Indio City Council
August 19, 2026

Review and file 2025 Annual Military Equipment Report in compliance with... Page 654 of 953 (inhalation effect) and simpler to clean up (fresh air) than traditional fog delivery systems, making PHANTOM the
ideal extraction tool.
b. Purpose
To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for the use of the less-lethal weapon systems may include, but are not limited to:
i. Self-destructive, dangerous and/or combative individuals. ii. Riot/crowd control and civil unrest incidents.
iii. Circumstances where a tactical advantage can be obtained. iv. Potentially vicious animals.
v. Training exercises or approved demonstrations.
c. Authorized Use
Only officers who have received POST certification in the use of chemical agents or have been trained by a POSTCertified instructor are authorized to use chemical agents. d. Expected Lifespan
All of the above-listed distraction devices are single-use and expire after five years.
e. Fiscal Impact
No annual maintenance. However, replacement costs to maintain an adequate supply.
f. Training
Sworn members utilizing chemical agent canisters are certified by POST less-lethal and chemical agents instructors. Desert Regional SWAT members conduct annual training for SWAT operators. g. Legal and Procedural Rules
Use is established under IPD Policy Section 308. It is the policy of the IPD to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.

Review and file 2025 Annual Military Equipment Report in compliance with... Page 655 of 953

8. Explosive Breaching Tools: Tools that are used to conduct an explosive breach.
a. Description, quantity, capabilities, and purchase cost i. ROYAL ARMS REMINGTON 870 BREACHING SHOTGUN,
cost: $795, quantity: 2. This weapon allows for breachers to safely utilize shotgun breaching rounds in order to
destroy deadbolts, locks, and hinges. The stand-off that is attached to the end of the barrel allows for positive
placement of the gun into the correct position and vents gases to prevent overpressure. This weapon, which is only utilized for breaching, can also defeat windows and sliding glass doors with a flashbang round.
ii. ROYAL ARMS TESAR-2 BLACK CAP 425 GRAIN COPPER
FRANGIBLE BREACHING ROUND, cost: $5 per round,
quantity: 16. The round is fired from abreaching shotgun and is used to destroy deadbolts, locks and hinges.
iii. ROYAL ARMS TESCR-3 GREEN CAP 375 GRAIN CLAYVON
FRANGIBLE BREACHING ROUND, cost: $5 per round,
quantity: 5. The round is fired from abreaching shotgun and is used to destroy all locks, cross-bolts and hinges. iv. ROYAL ARMS FB-82H 12-GAUGE 82 GRAIN FLASH BANG
HARD BREACHINGROUND, cost: $5 per round, quantity:

5. The rounds are fired from a breaching shotgun and can be used as a diversionary round or to can be used to
breach solid wood doors, light steel, sliders or car
windows.
b. Purpose
To safely gain entry into a structure.
c. Authorized Use
Explosive breaching may only occur after authorization by the Incident Commander or SWATCommander in the field and during training exercises.
d. Expected Lifespan
Breaching
Shotgun- 25
years
Royal Arms TESAR-2 black cap 425 grain copper breaching round- 5 years
Royal Arms TESR-3 green cap 375 grain clayvon frangible breaching round- 5 years Royal Arms FB-82H 12-gauge 82
grain flash-bang hard breaching round- 5 years
e. Fiscal Impact
Annual maintenance is minimal. However, replacement costs to maintain an adequate supply.
f. Training
All officers who use explosive breaching tools shall attend 40 hours

Review and file 2025 Annual Military Equipment Report in compliance with... Page 656 of 953 of explosive breachinginstruction and must additionally receive quarterly training for explosive operations.
g. Legal and Procedural Rules
It is the policy of the IPD to utilize breaching tools only for official law enforcement purposes,and pursuant to State and Federal law.

9. Unmanned Aerial System (UAS) / Drones: An unmanned aircraft system of any type that can sustain direct flight, whether remotely controlled or via pre-programming, and all the attached systems designed for gathering information via photography, recording, or any other means.
a. Description, quantity, capabilities, and purchase cost i. Axon Air DJI Mavic 3 Thermal SP Plus UAS, cost: $6,522.83, quantity: 1
ii. Axon Air DJI Mavic 3 Enterprise SP Plus UAS, cost:
$8,608.65, quantity: 2
iii. Axon Air DJI Mavic Mini 2 UAS, cost: $1,409.40, quantity: 2 b. Purpose
To be used to remotely gain visual/audio data, deliver CNT phone, open doors, clear buildings and deliver chemical munitions.
c. Authorized Use
i. Conduct aerial searches for Missing Persons.
ii. Collection of evidence in the form of aerial photography / video in support of an investigation (i.e., traffic scenes, shooting scenes, homicide scenes).
iii. Provide the ability to monitor rapidly evolving reports of at-large persons suspected of serious criminal offenses or individual threatening violent behavior before potentially dangerous faceto-face contact is required. iv. Unmanned robotics have numerous applications and are used instead of personnel in high-risk environments to increase safety for law enforcement.
v. Gain visual/audio data, deliver crisis negotiation phone, open doors, and remotely clear buildings and structures.
vi. Provide aerial observation to assist in managing natural disasters (i.e., fires, floods, storms).
vii. Community events for engagement and developing public trust. d. Expected Lifespan
3-5 years.
e. Fiscal Impact
Annual software, programming, and maintenance is approximately $9,757.32.
f. Training
All department UAS operators are licensed by the Federal Aviation

Review and file 2025 Annual Military Equipment Report in compliance with... Page 657 of 953 Administration for UAS operation after the completion of an 80-hour training course. In addition, department UAS operators conduct routine monthly training.
g. Legal and Procedural Rules
The use of this equipment shall comply with the authorizations and prohibitions set forth in IPD Policy 614 Unmanned Aerial Systems UAS Operations and FAA Regulation 14 CFR Part 107 Small Unmanned Aircraft Systems.

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City Council
August 19, 2026

STAFF REPORT
To: City Council
From: Jonathan Nicks, City Manager
Prepared by: Brian Tully, Chief of Police
Subject: Master Services and Purchasing Agreement with Axon Enterprise Inc. for the Officer Safety Plan Package, including Body-Worn Cameras, TASER 10 Upgrade and Digital Evidence Storage for Five Years at a Total Cost of $2,158,881.

RECOMMENDATION:

Approve a five-year Master Services and Purchasing Agreement (MSPA) with Axon Enterprise Inc. for the purchase of 95 Body-Worn Cameras (BWC’s), 87 Axon TASER 10s, and all related equipment, AI-Assisted report-writing software, licensing, and digital storage for Axon related evidence. Total annual cost of approximately $432,000. Five-year total: $2,158,881 (Attachments A and B).

SUMMARY:

The Indio Police Department (IPD) initiated its Body-Worn Camera (BWC) program in 2015. In 2022, following the evaluation and testing of several systems, the City entered into a five-year agreement with Axon Enterprise, Inc. for the purchase of BWCs and TASER 7 devices for all sworn personnel, as well as BWCs for all other field personnel. The subscription-based program has successfully provided updated equipment and a centralized digital evidence management system.

As technology and public safety needs continue to evolve, IPD has researched additional tools and capabilities now available through Axon. With the current agreement entering its fifth year, IPD evaluated renewal options and was presented with several package alternatives designed to provide expanded technology solutions at a lower overall cost than purchasing individual components separately. IPD recommends entering into a new five-year agreement with Axon Enterprise, Inc. under the Officer Safety Plan. The proposed agreement would provide upgraded TASER 10 devices and BWCs for sworn personnel, BWCs for all other enforcement personnel, body-worn camera auditing software, virtual reality training headsets for lethal and less-lethal scenario-based training, unlimited cloud-based digital evidence storage, and software to manage CCTV, drone, and livestreamed BWC video.

BACKGROUND INFORMATION:

The Indio Police Department has recognized the value of Body-Worn Camera (BWC) technology since initially issuing cameras to officers in 2015. In 2022, the Department expanded its program and contracted with Axon Enterprise, Inc. (Axon) to provide BWCs to all field personnel. Through a five-year agreement with Axon, TASER 7 devices were also issued to officers, and all digital evidence was stored within Axon’s Evidence.com platform.

AGENDA ITEM #9.16
Master Services and Purchasing Agreement with Axon Enterprise Inc. for t... Page 666 of 953 BWC footage has become an essential tool for law enforcement transparency, investigations, and prosecutions. Recorded footage enhances supervisory oversight, supports officer accountability, and has helped protect the City from costly legal claims and unfounded misconduct complaints.

Incidents involving uses of force, both locally and nationwide, continue to demonstrate the importance of reliable video-recording technology in promoting public trust, transparency, and accountability.

During the current contract term, Axon’s BWC system has performed effectively and integrates with the Department’s Computer-Aided Dispatch (CAD) system while providing a comprehensive digital evidence management solution through Evidence.com. The platform securely stores digital evidence, allows for automatic uploads from BWCs, and supports the upload of crime scene photographs captured through Axon applications. Evidence can be efficiently shared with other law enforcement agencies and the District Attorney’s Office by Records or Evidence staff.

The proposed Officer Safety Plan 10 Plus (OSP) provides a comprehensive technology solution for the Department. Under the proposal, the Department would receive 95 BWCs for sworn personnel and other enforcement staff, including Code Enforcement Officers and Community Service Officers.

The five-year agreement includes extended warranties, spare cameras, camera replacements at 2.5 and 5 years at no additional cost, software updates and upgrades, and unlimited secure cloud storage for BWC footage and third-party digital media.

The Department first implemented TASER devices in 2006 as a less-lethal option to help reduce injuries to officers and members of the public. The proposed OSP package includes the TASER 10, Axon’s newest less-lethal device. TASER 10 technology automatically activates nearby BWCs when deployed, helping ensure that incidents are recorded during rapidly evolving situations. This feature enhances evidence collection and accountability by reducing the likelihood that video recording is not initiated during critical incidents. Under the proposed OSP agreement, all sworn personnel would be issued a TASER 10 device. The agreement includes warranties for the full five-year term, along with holsters, cartridges, training equipment, repairs, and annual instructor training at no additional cost.

The proposed package also includes additional technology and software enhancements to support operations, accountability, and training. Axon’s Performance module would allow command staff to audit BWC and TASER usage for policy compliance and supervisory review. BWCs equipped with LTE connectivity would enable automatic uploads to Evidence.com and provide livestreaming capabilities during critical incidents. Supervisors and dispatch personnel would also be able to monitor BWC user locations through an integrated mapping system within the Fusus platform.

Fusus further allows the Department to monitor BWC footage and CCTV cameras within a single interface.

The proposal also includes Virtual Reality (VR) training equipment, including VR headsets, training TASERs, and training firearms to support lethal and less-lethal scenario-based training. While livefire TASER training would continue to be required, VR technology would provide an additional training resource that can be used regularly without additional operational costs.

The Department evaluated several AI-assisted report-writing tools and, after testing by patrol and investigative personnel, determined that Axon’s Draft One module best met operational needs. Draft One uses audio captured through BWCs to generate draft police reports intended to streamline the report-writing process. The system includes safeguards designed to support legal and policy compliance. Use of the software is expected to drastically reduce the amount of time officers spend

Master Services and Purchasing Agreement with Axon Enterprise Inc. for t... Page 667 of 953 preparing reports. This will allow for increased proactive policing efforts and community engagement while helping reduce officer fatigue and overtime costs associated with report writing.

After evaluating the proposal and considering interoperability with the Department’s future CAD system, as well as the efficiency of evidence sharing with the District Attorney’s Office, staff determined that Axon’s proposal provides the most beneficial solution for the City of Indio.

Axon Enterprise, Inc. has more than 30 years of experience providing technology solutions for law enforcement and public safety agencies. Originally established as TASER International, Inc., the company expanded from less-lethal devices into body-worn and in-car camera systems, cloud-based digital evidence management, and integrated public safety technology platforms. Axon currently partners with more than 18,000 agencies worldwide and employs more than 5,000 people in developing and supporting public safety technology solutions.

The Indio Police Department is requesting to contract with Axon Enterprise, Inc., pursuant to the Limited availability/ sole source exemption under Section 33.116 (C)(4)(b) of the Indio Municipal Code. Axon's extensive experience in designing and manufacturing BWCs, TASERS, and related equipment and software, coupled with a long and vast reputation for reliability and quality, makes Axon the ideal vendor for this type of specialized law enforcement technology and software.

FINANCIAL SUMMARY:

Current FY Financial
Impact:
429,957.91 In current year budget: Yes
Current FY General
Fund Impact:
429,957.91 Budget adjustment: No
Next FY Financial
Impact:
432,383.89 Strategic Objective: Public Safety
Source of funds: General Fund Fund-Org-Object
Reference:
1014211 555005
Machinery & Equipment
Additional Financial Details:

The attached proposal (Attachment A) from Axon Enterprise, Inc. includes (95) Body-Worn Cameras, (87) TASER’s, all previously referenced software modules, and all associated digital evidence storage and licensing services for a total of $2,158,881 over the five-year contract term.

Funding for the first year of the project was partially approved by the City Council as part of the Police Department’s FY 2026-27 operating budget. The approved budget includes $246,000 for the Axon contract within the Police Administration Machinery and Equipment Fund and $50,000 for AIassisted report-writing software within the Field Services Computer Supplies Fund. The Police Department anticipates salary savings resulting from vacant positions within the Field Services Division and will use those savings to encumber the remaining $134,000 within the previously approved operating budget. Funding for future fiscal year payments will be presented to the City Council during the annual budget review process.

Description FY26/27 FY27/28 FY28/29 FY29/30 FY30/31
Annual Cost $429,957.91 $432,383.89 $432,383.89 $432,383.91 $431,771.33 ATTACHMENTS:

Attachment A - Indio Police Department Contract

Master Services and Purchasing Agreement with Axon Enterprise Inc. for t... Page 668 of 953 Attachment B - Indio PD (CA) - Axon MSPA
APPROVAL(S):

Brian Tully, Chief of Police Approved - 11 Aug 2026
Ruby D. Walla, Director of Finance Approved - 12 Aug 2026 Steven Graham Pacifico, City Attorney Approved - 13 Aug 2026 Jonathan Nicks, City Manager Approved - 13 Aug 2026

Master Services and Purchasing Agreement with Axon Enterprise Inc. for t... Page 669 of 953 Axon Enterprise, Inc.
17800 N 85th St, Scottsdale, Arizona 85255, United States VAT: 86-0741227
Domestic: (800) 978-2737 | International: +1 800.978.2737 Q-837429-002 Acct: 110850
Issued Aug 11, 2026
Expires Sep 23, 2026
Payment Terms N30
Mode of Delivery AUTO-GND
Indio Police Department - CA Currency: USD

CUSTOMER DETAILS

SHIP TO
Indio Police Department - CA
46800 JACKSON ST

INDIO, CA
92201-6040
USA

BILL TO
Indio Police Department - CA
Attn: Accounts Payable
100 Civic Cener Mall
Indio, CA
92201
USA

SALES REPRESENTATIVE
David Gollobit
Phone: (480) 905-2060
Email: [email protected]

PRIMARY CONTACT
Doug Haynes
Phone: (760) 541-4519
Email: [email protected]

QUOTE SUMMARY
Program Length 60 Months
Contract Start Oct 1, 2026
Contract End Sep 30, 2031

TOTAL CONTRACT
Net Total $2,122,216.57
Transfer Balance ($47,239.33)
Hardware $408,419.61
Software $1,626,167.24
Services $125,266.99
Warranties $9,602.06
Est. Tax $36,664.36
Total Contract Value $2,158,880.93

DISCOUNT SUMMARY
List Price $3,308,647.39
Bundled Savings $520,473.27
Additional Discount $665,957.55
Total Discount $1,186,430.82
Net Price $2,122,216.57

PAYMENT SUMMARY
DATE SUBTOTAL EST. TAX TOTAL
Sep 1, 2026 $422,639.43 $7,318.48 $429,957.91
Sep 1, 2027 $425,044.81 $7,339.08 $432,383.89
Sep 1, 2028 $425,044.81 $7,339.08 $432,383.89
Sep 1, 2029 $425,044.82 $7,339.09 $432,383.91
Sep 1, 2030 $424,442.70 $7,328.63 $431,771.33
Total $2,122,216.57 $36,664.36 $2,158,880.93
Axon Enterprise, Inc. Doc ID: 726f812cdde9 Tax estimates are approximate and subject to change at time of invoicing.

Q-837429-002 • Page 1 of 6

Master Services and Purchasing Agreement with Axon Enterprise Inc. for t... Page 670 of 953 Indio Police Department - CA Q-837429-002 Generated Aug 11, 2026

SUMMARY PRICING FOR TERM

SUMMARY PRICING
ITEM DESCRIPTION QTY TERM UNBUNDLEDLIST PRICE NET PRICE SUBTOTAL EST. TAX TOTAL 100552 Transfer Balance - Goods
1—— $1.00 -$9,082.89 -$9,082.89 -$794.75 -$9,877.64
100553 Transfer Balance - Software and Services
1—— $1.00 -$38,156.44 -$38,156.44 $0.00 -$38,156.44
HWCNAB4
Axon Body 4 Connected Hardware Bundle
95 60
(10/2026)
— $1,049.00 $0.00 $0.00 $0.00 $0.00
H00002
Axon Body 4 Multi-Bay Dock Bundle
12 60
(10/2026)
— $1,638.90 $0.00 $0.00 $0.00 $0.00
100610 Axon Signal - Installation Service - Virtual
1—— $1,500.00 $0.00 $0.00 $0.00 $0.00
100165
Axon Evidence - Storage - Third Party Unlimited
85 60
(10/2026)
— $32.76 $2.46 $12,530.70 $0.00 $12,530.70
102604 VR Instructor Certification + Implementation (2-Day) 1—— $12,000.00 $0.00 $0.00 $0.00 $0.00
101283
Axon Records - Draft One - AI-Assisted Report Writing
95 60
(10/2026)
— $70.52 $70.52 $401,964.00 $0.00 $401,964.00
85760
Axon Auto-Transcribe - Unlimited Service
95 60
(10/2026)
— $27.12 $27.12 $154,584.00 $0.00 $154,584.00
B00088
OSP-Unlimited (No VR)
10 60
(10/2026) $192.58 $192.57 $109.93 $65,958.50 $231.95 $66,190.45 M00050
Officer Safety Plan 10 Plus
85 60
(10/2026) $456.61 $456.63 $299.33 $1,526,594.70 $37,227.16 $1,563,821.86 102658 Axon Fusus - Hardware Allowance - CCTV Streams 150 —— $52.16 $52.16 $7,824.00 $0.00 $7,824.00
SUBTOTAL EST. TAX TOTAL
Total $2,122,216.57 $36,664.36 $2,158,880.93
Axon Enterprise, Inc. Doc ID: 726f812cdde9 Tax estimates are approximate and subject to change at time of invoicing.

Q-837429-002 • Page 2 of 6

Indio Police Department - CA Q-837429-002 Generated Aug 11, 2026

DELIVERY SCHEDULE
ESTIMATED SHIPPING DATE: Sep 1, 2026
Shipping Location: 46800 JACKSON ST, INDIO, CA, 92201-6040, USA

HARDWARE QTY
Axon Body - Dock Powercord - North America 14
Axon Body - Dock Wall Mount - Bracket Assembly 14
Axon Body - Mount - Wing Clip Rapidlock 105
Axon Body 4 - Cable - USB-C to USB-C 105
Axon Body 4 - Camera - First Responder Black Rapidlock US 98 Axon Body 4 - Dock - Eight-Bay 12
Axon Body 4 - Magnetic Disconnect Cable 105
Axon Dedrone - Remote ID Sensor HW Kit 4
Axon Fusus - Hardware Allowance - CCTV Streams 300
Axon Signal - Battery - CR2032 Single Pack 95
Axon Signal - Signal Sensor (sensor only) 95
Axon TASER - Battery Pack - Tactical 96
Axon TASER - Cleaning Kit 1
Axon TASER - Dock - Six-Bay Plus Core 2
Axon TASER - Target - Conductive Professional Ruggedized 2 Axon TASER - Target Frame - Professional 27.5 in X 75 in 2 Axon TASER 10 - Cartridge - Halt 850
Axon TASER 10 - Cartridge - Inert 300
Axon TASER 10 - Cartridge - Live 1700
Axon TASER 10 - Command Box 1
Axon TASER 10 - Handle - Yellow Class 3R 87
Axon TASER 10 - Holster - Safariland RH 85
Axon TASER 10 - Magazine - Halt Training Blue 4
Axon TASER 10 - Magazine - Inert Red 30
Axon TASER 10 - Magazine - Live Duty Black 87
Axon TASER 10 - Magazine - Live Training Purple 30
Axon TASER 10 - Replacement Interposer Bucket 8
Axon TASER 10 - Replacement Tool Kit - Interposer Bucket 1 Axon VR - Controller - Handgun VR19H 4
Axon VR - Controller - TASER 10 4
Axon VR - Headset - Battery 4
Axon VR - Headset - HTC Focus Vision 4
Axon VR - Holster - TASER 10 Safariland Gray - LH 4
Axon VR - Holster - TASER 10 Safariland Gray - RH 4
Axon VR - Multi-User Room Marker 2
Axon VR - Tablet 4
Axon Enterprise, Inc. Doc ID: 726f812cdde9 Tax estimates are approximate and subject to change at time of invoicing.

Q-837429-002 • Page 3 of 6

Master Services and Purchasing Agreement with Axon Enterprise Inc. for t... Page 672 of 953 Indio Police Department - CA Q-837429-002 Generated Aug 11, 2026 Axon VR - Tablet Case 4
Axon VR - Tactical Bag 4
Enhanced Hook-and-Loop Training (Halt) Suit (V2) 1

SOFTWARE QTY
Full VR Plan 85
OSP-Unlimited Plus (No VR) 85
TASER 10 Certification Pro Plan 85

SERVICES QTY
Axon Body - License - Connected Camera 30 Months 95
Axon Fusus - PSO - Implementation - All 1
Axon Investigate - Training - Operator and Examiner 5
Axon Signal - Installation Service - Virtual 2
Axon TASER 10 - Replacement Access Program - Duty Cartridge 85 VR Instructor Certification + Implementation (2-Day) 1

WARRANTIES QTY
Axon Body - TAP Warranty - Camera 97
Axon Body - TAP Warranty - Multi-Bay Dock 13
Axon Signal - Ext Warranty - Signal Sensor 95
Axon TASER - Ext Warranty - Battery Pack T7/T10 181
Axon TASER - Ext Warranty - Dock Six-Bay T7/T10 2
Axon TASER 10 - Ext Warranty - Handle 87
Axon VR - Ext Warranty - Handgun Controller 4
Axon VR - Ext Warranty - Headset 4
Axon VR - Ext Warranty - Tablet 4
Axon VR - Ext Warranty - TASER Controller 4
ESTIMATED SHIPPING DATE: Oct 1, 2026
Shipping Location: 46800 JACKSON ST, INDIO, CA, 92201-6040, USA

SOFTWARE QTY
Axon Auto-Transcribe - Unlimited Service 95
Axon Body - License - Fusus Livestream 95
Axon Community Link 85
Axon Dedrone - DedroneTracker.AI RF Software Hosted 4
Axon Evidence - Auto Tagging License 85
Axon Evidence - ECOM License - Pro 95
Axon Evidence - Redaction Assistant User License 85
Axon Evidence - Storage - 10GB A La Carte 950
Axon Evidence - Storage - Axon Device Unlimited 95
Axon Evidence - Storage - Third Party Unlimited 85
Axon Fusus - CCTV Streams 150
Axon Performance - License 85
Axon Records - Draft One - AI-Assisted Report Writing 95 Axon Enterprise, Inc. Doc ID: 726f812cdde9 Tax estimates are approximate and subject to change at time of invoicing.

Q-837429-002 • Page 4 of 6

Master Services and Purchasing Agreement with Axon Enterprise Inc. for t... Page 673 of 953 Indio Police Department - CA Q-837429-002 Generated Aug 11, 2026 Axon Standards - License 95
Axon TASER - Data Science Program 85
Axon TASER - Evidence.Com License 86
Axon VR - User Access - Full VR 85

SERVICES QTY
Axon Investigate - Third Party Video Support 85
Axon TASER - On Demand Certification 85
ESTIMATED SHIPPING DATE: Sep 1, 2027
Shipping Location: 46800 JACKSON ST, INDIO, CA, 92201-6040, USA

HARDWARE QTY
Axon TASER 10 - Cartridge - Halt 680
ESTIMATED SHIPPING DATE: Sep 1, 2028
Shipping Location: 46800 JACKSON ST, INDIO, CA, 92201-6040, USA

HARDWARE QTY
Axon TASER 10 - Cartridge - Halt 680
ESTIMATED SHIPPING DATE: Mar 1, 2029
Shipping Location: 46800 JACKSON ST, INDIO, CA, 92201-6040, USA

HARDWARE QTY
Axon Body - TAP Refresh 1 - Camera 97
Axon Body - TAP Refresh 1 - Dock Multi-Bay 13
Axon VR - TAP Refresh 1 - Handgun Controller 4
Axon VR - TAP Refresh 1 - Headset 4
Axon VR - TAP Refresh 1 - Tablet 4
Axon VR - TAP Refresh 1 - TASER Controller 4
ESTIMATED SHIPPING DATE: Sep 1, 2029
Shipping Location: 46800 JACKSON ST, INDIO, CA, 92201-6040, USA

HARDWARE QTY
Axon TASER 10 - Cartridge - Halt 680
ESTIMATED SHIPPING DATE: Sep 1, 2030
Shipping Location: 46800 JACKSON ST, INDIO, CA, 92201-6040, USA

HARDWARE QTY
Axon TASER 10 - Cartridge - Halt 680
ESTIMATED SHIPPING DATE: Sep 1, 2031
Shipping Location: 46800 JACKSON ST, INDIO, CA, 92201-6040, USA

HARDWARE QTY
Axon Body - TAP Refresh 2 - Camera 97
Axon Body - TAP Refresh 2 - Dock Multi-Bay 13
Axon Enterprise, Inc. Doc ID: 726f812cdde9 Tax estimates are approximate and subject to change at time of invoicing.

Q-837429-002 • Page 5 of 6

Master Services and Purchasing Agreement with Axon Enterprise Inc. for t... Page 674 of 953 Indio Police Department - CA Q-837429-002 Generated Aug 11, 2026

TERMS & CONDITIONS
Tax is estimated based on rates applicable at date of quote and subject to change at time of invoicing. If a tax exemption certificate should be applied, please submit prior to invoicing.

STANDARD TERMS AND CONDITIONS
Axon Master Services and Purchasing Agreement:

This Quote is limited to and conditional upon your acceptance of the provisions set forth herein and Axon’s Master Services and Purchasing Agreement (posted at https:// www.axon.com/sales-terms-and-conditions), as well as the attached Statement of Work (SOW) for Axon Fleet and/or Axon Interview Room purchase, if applicable. In the event you and Axon have entered into a prior agreement to govern all future purchases, that agreement shall govern to the extent it includes the products and services being purchased and does not conflict with the Axon Customer Experience Improvement Program Appendix as described below.

ACEIP:

The Axon Customer Experience Improvement Program Appendix, which includes the sharing of de-identified segments of Agency Content with Axon to develop new products and improve your product experience (posted at www.axon.com/legal/sales-terms-and-conditions), is incorporated herein by reference. By signing below, you agree to the terms of the Axon Customer Experience Improvement Program.

Acceptance of Terms:

Any purchase order issued in response to this Quote is subject solely to the above referenced terms and conditions. By signing below, you represent that you are lawfully able to enter into contracts. If you are signing on behalf of an entity (including but not limited to the company, municipality, or government agency for whom you work), you represent to Axon that you have legal authority to bind that entity. If you do not have this authority, please do not sign this Quote.

EXCEPTIONS TO STANDARD TERMS AND CONDITIONS
Agency has existing contract(s) originated via Quote(s):

Q-371149, Q-418020, Q-609897, Q-727085,
Agency is terminating those contracts effective 10/1/2026. Any changes in this date will result in modification of the program value which may result in additional fees or credits due to or from Axon.

The parties agree that Axon is applying a Transfer Balance of -$47,239.33 100% discounted body-worn camera and docking station hardware contained in this quote reflects a TAP replacement for hardware purchased under existing quotes aforementioned above. All TAP obligations from this contract will be considered fulfilled upon execution of this quote.

Any credits contained in this quote are contingent upon payment in full of the following amounts:

Pending Billing - Q-727085 - 5/1/2026 - $15,612.69
Outstanding Invoice - INUS427477 - 3/1/2026 - $168,486.50 Outstanding Invoice - INUS427368 - 3/1/2026 - $13.20
Rewrite Estimates
Estimated Amounts and Contract Terminations. Any amounts stated as due under existing or terminated contracts — including contract transfer balances carried forward to new or pending contracts — are estimates based on payments received as of the calculation date. These estimates may be adjusted if new contracts are not executed on the anticipated dates or if expected payments are not made.

Refresh Shipment Timing
Technology Assurance Plan (TAP) Refresh Prior to Renewal. For Customers with expiring agreements that include TAP refresh rights, Axon may, in its discretion, ship refresh hardware under the existing contract while renewal or replacement agreements are in progress. Any such shipments will be deemed made under the terms of the existing contract until the new contract is fully executed, after which any applicable updates, fees, or adjustments will apply.

Shipment Timing
Shipment Variance . Estimated shipment dates are provided for planning purposes only and are not guarantees. Axon may ship hardware before or after the estimated shipment date, and failure to meet an estimated shipment date will not, by itself, constitute a breach, provided Axon uses commercially reasonable efforts to meet estimated shipment dates.

Signature Date Signed
8/11/2026
Axon Enterprise, Inc. Doc ID: 726f812cdde9 Tax estimates are approximate and subject to change at time of invoicing.

Q-837429-002 • Page 6 of 6

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This Master Services and Purchasing Agreement ("Agreement") is between Axon Enterprise, Inc. ("Axon"), and the Customer listed below or, if no Customer is listed below, the Customer on the Quote (as defined below) ("Customer").

This Agreement is effective as of the later of the (a) last signature date on this Agreement or (b) date of acceptance of the Quote ("Effective Date"). Axon and Customer are each a "Party" and collectively "Parties". This Agreement governs Customer’s purchase and use of the Axon Devices and Services detailed in the Quote. It is the intent of the Parties that this Agreement will govern all subsequent purchases by Customer for the same Axon Devices and Services in the Quote, and all such subsequent quotes accepted by Customer shall be also incorporated into this Agreement by reference as a Quote. The Parties agree as follows:

1. Definitions.

1.1. "Axon Cloud Services" means the cloud-based, hosted, subscription services provided and operated by Axon and made accessible to Customer over the internet or other network, including associated storage, processing, analytics, digital evidence management, data retention, artificial intelligence features, integrations, and related functionality. Cloud Services include Updates and enhancements provided during the Subscription Term and is accessed, not installed or transferred. This does not include third-party SaaS products.

1.2. "Axon Device" means all hardware provided by Axon under this Agreement. Axon-manufactured Devices are a subset of Axon Devices.

1.3. “MSRP” means manufacturer’s suggested retail price, or the standalone price of the individual Axon Device at the time of sale. For multiple Axon Devices that may be combined as a single offering on a Quote, MSRP is the standalone price of all individual components.

1.4. "Quote" means an offer to sell and is only valid for devices and services on the offer at the specified prices.

Any inconsistent or supplemental terms within Customer’s purchase order in response to a Quote will be void. Orders are subject to prior credit approval. Changes in the deployment estimated ship date may change charges in the Quote. Shipping dates are estimates only. Axon is not responsible for typographical errors in any Quote by Axon, and Axon reserves the right to cancel any orders resulting from such errors.

1.5. "Services" means all services provided by Axon under this Agreement, including Software, Axon Cloud Services, and professional services.

2. Term. This Agreement begins on the Effective Date and continues until all subscriptions hereunder have expired or have been terminated ("Term"). All subscriptions begin on the date stated in the Quote and end upon completion of program or the subscription stated in the Quote ("Subscription Term").

3. Payment. Axon invoices for Axon Devices upon shipment, or on the date specified within the invoicing plan in the Quote. Payment is due net 30 days from the invoice date. Axon invoices for Axon Cloud Services on an upfront annual basis prior to the beginning of the Subscription Term and upon the anniversary of the Subscription Term.

Payment obligations are non-cancelable. Unless otherwise prohibited by law, Customer will pay interest on all past-due sums at the lower of one-and-a-half percent (1.5%) per month or the highest rate allowed by law.

Customer will pay invoices without setoff, deduction, or withholding. If Axon sends a past due account to collections, Customer is responsible for collection and attorneys’ fees. Axon may charge additional fees if Customer exceeds the permitted use purchased. Axon will notify Customer of additional charges as soon as reasonably practicable.

4. Taxes. Customer is responsible for sales and other taxes associated with the order unless Customer provides Axon a valid tax exemption certificate.

5. Returns. All sales are final. Axon does not allow refunds or exchanges, except warranty returns or as provided by state or federal law.

6. Online Support Platforms. Use of Axon's online support platforms (e.g., Axon Academy and MyAxon) are governed by the Axon Online Support Platforms Terms of Use Appendix available at www.axon.com/sales-termsand-conditions.

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7. Third-Party Hardware, Software and Services. Use of hardware, software, or services of any third-party products are governed by the terms, if any, entered into between Customer and the respective third-party provider or the applicable terms and conditions located at www.axon.com/sales-terms-and-conditions.

8. Statement of Work; Scope Changes. Certain Axon Devices and Services may require a Statement of Work that details Axon’s Service deliverables ("SOW"). Axon is only responsible for the performance of Services described in the SOW, Quote, or under this Agreement. All other services are out of scope unless mutually agreed to in a signed change order. Changes may require an equitable adjustment in fees or schedule. Any applicable SOW is incorporated into this Agreement by reference.

9. Design Changes. Axon may make design or feature changes to any Axon Device or Service without notifying Customer or making the same change to Axon Devices and Services previously purchased by Customer.

10. Combined Offerings. Some offerings in a Quote combine existing and pre-released Axon Devices or Services.

Some offerings may not be available at the time of Customer’s purchase. Axon will not provide a refund, credit, or additional discount beyond what is in the Quote due to delay of availability or Customer’s choice not to utilize any portion of a combined offering.

11. Insurance. Axon will maintain General Liability, Workers’ Compensation, and Automobile Liability insurance.

Upon request, Axon will supply certificates of insurance.

12. Security. Axon will implement and maintain commercially reasonable and appropriate security measures to secure Customer data against accidental or unlawful loss, access or disclosure.

13. IP Rights. Axon and to the extent applicable, Axon’s licensors, own and reserve all rights, titles, and interest in and to the Axon’s intellectual property, including but not limited to, Axon-manufactured Devices, Services, documentation, designs, improvements, analytics, derivative works, improvements, and suggestions to Axon, including all related intellectual property rights (including ownership of all trade secrets and copyrights pertaining thereto), regardless of the form or media in which the original or copies may exist. Customer will not cause any Axon proprietary rights to be violated.

14. IP Indemnification. Axon will indemnify Customer against all claims, losses, and reasonable expenses from any third-party claim alleging that the use of Axon-manufactured Devices and/or Axon Services (“Axon Products”) infringes or misappropriates the third-party’s intellectual property rights. Customer must promptly provide Axon with written notice of such claim, tender to Axon the defense or settlement of such claim at Axon’s expense and cooperate fully with Axon in the defense or settlement of such claim. Axon’s IP indemnification obligations do not apply to claims based on (a) modification of Axon Products by Customer or a third-party not approved by Axon; (b) use of Axon Products in combination with hardware or services not approved by Axon; (c) use of Axon Products other than as permitted in this Agreement; or (d) use of Axon Products that is not the most current software release provided by Axon.

15. LIMITATIONS. AXON’S CUMULATIVE LIABILITY TO ANY PARTY FOR ANY LOSS OR DAMAGE

RESULTING FROM ANY CLAIM, DEMAND, OR ACTION ARISING OUT OF OR RELATING TO THIS

AGREEMENT WILL NOT EXCEED THE PURCHASE PRICE PAID TO AXON FOR THE AXON DEVICE, OR IF FOR SERVICES, THE AMOUNT PAID FOR SUCH SERVICES OVER THE TWELVE (12) MONTHS PRECEDING THE CLAIM. NEITHER PARTY WILL BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL,

PUNITIVE OR CONSEQUENTIAL DAMAGES, HOWEVER CAUSED, WHETHER FOR BREACH OF WARRANTY OR CONTRACT, NEGLIGENCE, STRICT LIABILITY, TORT OR ANY OTHER LEGAL THEORY.

16. Termination.

16.1.For Breach. A Party may terminate this Agreement for cause if it provides thirty (30) days written notice of the breach to the other Party, and the breach remains uncured thirty (30) days after receipt of the written notice. If Customer terminates this Agreement due to Axon’s uncured breach, Axon will refund prepaid amounts on a prorated basis based on the effective date of termination.

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16.2.By Customer. If sufficient funds are not appropriated or otherwise legally available to pay the fees, Customer may terminate this Agreement. Customer will deliver notice of termination under this section as soon as reasonably practicable.

16.3.Effect of Termination. Upon termination of this Agreement, Customer rights immediately terminate.

Customer remains responsible for all fees incurred before the effective date of termination. If Customer purchases Axon Devices for less than the MSRP and this Agreement terminates before the end of the Subscription Term, Axon will invoice Customer the difference between the MSRP for Axon Devices procured, including any Spare Axon Devices, and amounts paid towards those Axon Devices. Only if terminating for non-appropriation, Customer may avoid the MSRP fee by returning Axon Devices to Axon within thirty (30) days of termination. For TASER purchases, this includes returning the TASER Device, rechargeable battery, holster, dock, core, training suits, and unused cartridges to Axon.

17. Confidentiality. "Confidential Information" means nonpublic information designated as confidential or, given the nature of the information or circumstances surrounding disclosure, that should reasonably be understood to be confidential. Each Party will take reasonable measures to avoid disclosure, dissemination, or unauthorized use of the other Party’s Confidential Information. Unless required by law, neither Party will disclose the other Party’s Confidential Information during the Term and for five (5) years thereafter. To the extent permissible by law, Axon pricing is Confidential Information and competition sensitive. If Customer receives a public records request to disclose Axon Confidential Information, to the extent allowed by law, Customer will provide notice to Axon before disclosure. Axon may publicly announce information related to this Agreement.

18. Compliance with Laws.

18.1.Laws. Each Party will comply and maintain compliance with all applicable federal, provincial, state, and local laws, including without limitation, import and export control laws and regulations as well as firearm regulations and the Gun Control Act of 1968, if applicable.

18.2.Controlled Products. Customer acknowledges that Axon Devices, Software, and Services are subject to U.S. and international export control laws, including the U.S. Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR). Customer represents and warrants that neither it nor any End User is a "Restricted Person," meaning any individual or entity that (1) is subject to U.S. sanctions or trade restrictions, (2) appears on any U.S. government restricted party list, (3) engages in prohibited weapons proliferation activities, or (4) is owned or controlled by, or acting on behalf of, such persons or entities. Customer must promptly notify Axon of any change in status, and Axon may terminate this Agreement if Customer or any End User becomes a Restricted Person or violates export laws.

19. General.

19.1.Force Majeure. Neither Party will be liable for any delay or failure to perform due to a cause beyond a Party’s reasonable control.

19.2.Independent Contractors. The Parties are independent contractors. Neither Party has the authority to bind the other. This Agreement does not create a partnership, franchise, joint venture, fiduciary, or employment relationship between the Parties.

19.3.Third-Party Beneficiaries. There are no third-party beneficiaries under this Agreement.

19.4.Non-Discrimination. Neither Party nor its employees will discriminate against any person based on race; religion; creed; color; sex; gender identity and expression; pregnancy; childbirth; breastfeeding; medical conditions related to pregnancy, childbirth, or breastfeeding; sexual orientation; marital status; age; national origin; ancestry; genetic information; disability; veteran status; or any class protected by local, state, or federal law.

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19.5.Assignment. Neither Party may assign this Agreement without the other Party’s prior written consent. Axon may assign this Agreement, its rights, or obligations without consent: (a) to an affiliate or subsidiary; or (b) for purposes of financing, merger, acquisition, corporate reorganization, or sale of all or substantially all its assets. This Agreement is binding upon the Parties respective successors and assigns.

19.6.Waiver. No waiver or delay by either Party in exercising any right under this Agreement constitutes a waiver of that right.

19.7.Severability. If a court of competent jurisdiction holds any portion of this Agreement invalid or unenforceable, the remaining portions of this Agreement will remain in effect.

19.8.Survival. The following sections will survive termination: Payment, Axon Device Warnings, IP Rights, IP Indemnification, Limitations, Confidentiality, and any other sections detailed in the survival sections of the attachments.

19.9.Governing Law. The laws of the country, state, province, or municipality where Customer is physically located, without reference to conflict of law rules, govern this Agreement and any dispute arising from it. The United Nations Convention for the International Sale of Goods does not apply to this Agreement. The Parties expressly agree that either Party may appear for and attend all matters, remotely via teleconference or videoconference at the party's discretion, to the extent allowable by court.

19.10. Notices. All notices must be in English. Notices posted on Customer’s Axon Evidence site are effective upon posting. Notices by email are effective on the sent date of the email. Notices by personal delivery are effective immediately. Notices to Customer shall be provided to the address on file with Axon. Notices to Axon shall be provided to Axon Enterprise, Inc. Attn: Legal, 17800 North 85th Street, Scottsdale, Arizona 85255 with a copy to [email protected].

19.11. Entire Agreement. This Agreement, the Appendices, including any applicable Appendices not attached herein for the products and services purchased, which are incorporated by reference and located in the Master Purchasing and Services Agreement located at https://www.axon.com/sales-terms-and-conditions, Quote(s) and any SOW(s), represent the entire agreement between the Parties. This Agreement supersedes all prior agreements or understandings, whether written or verbal, regarding the subject matter of this Agreement. This Agreement may only be modified or amended in a writing signed by the Parties.

Each Party, by and through its respective representative authorized to execute this Agreement, has duly executed and delivered this Agreement as of the date of signature.

AXON: CUSTOMER:

Axon Enterprise, Inc.

Signature: Signature:

Name: Name:

Title: Title:

Date: Date:

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Software and Cloud Services Terms of Use Appendix
I. General

1. Definitions

1.1. "Customer Content" means all data, files, and content uploaded into, ingested by, created in, or generated through Customer's use of Axon Cloud Services within Customer's tenant. This includes media/multimedia, recordings, reports, alerts, messages, videos, chats, and materials provided by the Customer, as well as Personal Data of users and data from applications connected to the solution. Customer Content excludes Non-Content Data, Dedrone Data, Third Party Content, and Third Party Services.

1.2. “Data Controller” means the natural or legal person, public authority, or any other body which alone or jointly with others determines the purposes and means of the processing of Personal Data.

1.3. “Data Processor” means a natural or legal person, public authority or any other body which processes Personal Data on behalf of the Data Controller.

1.4. “End User” means Customer or Customer’s employees, consultants, agents or contractors who are granted access to the Axon Cloud Services or Software in support of Customer’s internal business or operations.

1.5. "Evidence" is media or multimedia uploaded into Axon Evidence as 'evidence' by Customer. Evidence is a subset of Customer Content.

1.6. “Firmware” means the embedded software code installed on and operating within Axon Device, that enables the Axon Device’s core functionality, control, communication, or security. Firmware is a subset of Software.

1.7. "Non-Content Data" is data, configuration, and usage information about Customer’s Axon Cloud Services tenant, Axon Devices, client software, and users, that is transmitted or generated when using Axon Devices.

Non-Content Data includes data about users captured during account management and customer support activities. Non-Content Data does not include Customer Content.

1.8. “Personal Data" means any information relating to an identified or identifiable natural person. An identifiable natural person is one who can be identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, location data, an online identifier or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural, or social identity of that natural person.

1.9. "Processing" means any operation or set of operations which is performed on data or on sets of data, whether or not by automated means, such as collection, recording, organization, structuring, storage, adaptation or alteration, retrieval, consultation, use, disclosure by transmission, dissemination or otherwise making available, alignment or combination, restriction, erasure, or destruction.

1.10."Sensitive Personal Data" means Personal Data that reveals an individual’s health, racial or ethnic origin, sexual orientation, disability, religious or philosophical beliefs, or trade union membership.

1.11.“Software” means application software, programs, mobile or desktop applications, or other executable code provided to Customer for installation, download or use as defined in this Agreement but excludes Axon Cloud Services.

2. Customer Owns Customer Content. Customer retains all rights, title and interest, including all intellectual property rights, in and to Customer Content. Customer is solely responsible for uploading, sharing, managing and deleting Customer Content. Customer Content is not considered Axon's business records, and except as set out below, Axon obtains no interest in Customer Content.

2.1. Axon Access and Use of Customer Content.

Customer grants Axon a limited, non-exclusive right to access, process, store, transmit, and otherwise use Customer Content solely for the following purposes: providing, operating, maintaining, supporting, and securing the Axon Devices and Services; performing troubleshooting, diagnostics, system monitoring, maintenance, and incident response; and enforcing this Agreement and Axon policies governing use of the Axon Devices and Services. Unless otherwise agreed to by the Parties in writing, Axon shall not access or use Customer Content any reason except as expressly authorized in this Agreement.

3. Security. Axon implements appropriate technical and organizational security measures designed to prevent unauthorized access, use or disclosure of Customer Data and will maintain a comprehensive information security program to protect Axon Cloud Services and Customer Content. For Axon's digital evidence or records management systems, Axon agrees to comply with the Federal Bureau of Investigation Criminal Justice Information Services Security Addendum.

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4. Restrictions. Customer shall not, and shall not permit any third party to: (i) modify, translate, adapt, tamper with, repair, or create derivative works of the Axon intellectual property; (ii) reverse engineer, decompile, disassemble, or attempt to derive the source code; (iii) copy any Axon intellectual property, except as expressly permitted in writing; (iv) resell, rent, lease, loan, sublicense, distribute, or otherwise commercially exploit Axon intellectual property; (v) access or use Axon intellectual property to build a competing product or service or to copy features, functions, or graphics; (vi) remove, alter, or obscure any proprietary notices; (vii) access or use Axon Software or Cloud Services with the intent to gain unauthorized access, avoid incurring fees or exceeding usage limits or quotas; (viii) use trade secret information contained in Axon Software, except as expressly permitted in this Agreement; (ix) use Axon Devices, Software or Cloud Services to store or transmit infringing, libelous, or other unlawful or tortious material; material in violation of third-party privacy rights; or malicious code; or (x) use Axon Devices, Software or Cloud Services in order to monitor the availability, security, performance, or functionality of the of such products or for any other benchmarking or competitive purposes other than as authorized in this Agreement; scrape, build databases, or otherwise create permanent copies of such content, or keep cached copies longer than permitted by the cache header; or misrepresent the source or ownership of Axon Services.

5. Suspension. Axon may immediately suspend Customer’s or any End User’s access to any portion of the Axon Devices or Services upon notice if Axon reasonably determines that: (i) Customer’s or an End User’s use poses a security risk to Axon systems, other customers, or third parties; (ii) Customer fails to pay applicable fees; (iii) Customer or its End User’s use violates applicable law or regulation; (iv) such use may subject Axon or its affiliates to liability; or (v) such use is fraudulent or abusive. Customer remains responsible for all fees incurred through the period of suspension. Suspension does not terminate this Agreement unless Axon elects to terminate in accordance with the Termination provisions.

6. Warranty and Disclaimer. AXON WARRANTS THAT ALL AXON SOFTWARE AND AXON CLOUD

SERVICES, WHEN USED IN ACCORDANCE WITH APPLICABLE AXON DOCUMENTATION, WILL OPERATE IN ALL MATERIAL RESPECTS WITH THE DOCUMENTATION. EXCEPT AS EXPRESSLY STATED HEREIN, SOFTWARE, SERVICES OR CLOUD SERVICES ARE PROVIDED "AS IS," WITHOUT ANY

WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT OR UNINTERRUPTED OR ERROR-FREE USE. CUSTOMER AGREES AXON HAS NO

RESPONSIBILITY OR LIABILITY FOR ANY THIRD-PARTY SERVICES OR PRODUCTS USED BY THE CUSTOMER IN CONJUNCTION WITH AXON’S PRODUCTS OR SERVICES.

7. Updates. Axon may make available updates and error corrections ("Updates") to any Axon Software, Firmware, or Cloud Service product. Axon will provide Updates electronically via the Internet or media as determined by Axon. An "Upgrade" includes new versions of Axon products that (i) enhance features and functionality, as solely determined by Axon; and/or (ii) provide additional features or perform additional functions. Upgrades exclude new products that Axon introduces and markets as distinct products or applications. During the Customer’s Term, Axon will provide Update and Upgrade releases to the Customer on an if-and-when available basis.

8. Customer Responsibilities. Customer is responsible for (a) ensuring Customer owns Customer Content or has the necessary rights to use Customer Content (b) ensuring no Customer Content or Customer End User’s use of Customer Content, or Axon Software, Firmware, or Cloud Service products violates this Agreement or applicable laws, including acquiring and maintaining required consents; (c) maintaining necessary computer equipment and Internet connections for use of the Axon Software, Firmware, or Cloud Service products and any Updates thereto and (d) verifying the accuracy of any auto generated or AI-generated reports. If Customer becomes aware of any violation of this Agreement by an End User, Customer will immediately terminate that End User’s access to the Axon Software, Firmware, or Cloud Service products.

8.1. Passwords. Customer will also maintain the security of End User usernames and passwords and access by End Users to Customer Content. Customer is responsible for ensuring the configuration and utilization of the Axon Software, or Cloud Service products meet applicable Customer regulations and standards. Customer may not sell, transfer, or sublicense access to any other entity or person. If Customer provides access to unauthorized third-parties, Axon may assess additional fees along with suspending Customer’s access.

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Customer shall contact Axon immediately if an unauthorized party may be using Customer’s account or Customer Content, or if account information is lost or stolen.

9. YouTube. To the extent Customer uses the Axon Cloud Services to interact with YouTube®, such use may be governed by the YouTube Terms of Service, available at https://www.youtube.com/static?template=terms.

10. Roles of the Parties. To the extent that Customer is the Data Controller of Personal Data, Axon is its Data Processor. To the extent that Customer is a Data Processor of Personal Data, Axon is its subprocessor.

Notwithstanding the foregoing, to the extent any usage data (including query logs and metadata) and/or operations data (including billing and support data) in connection with Customer’s use of the Services (collectively “Usage and Operations Data”) is considered Personal Data, Axon is an independent Data Controller and shall Process such data in accordance with the Agreement and applicable data protection laws to develop, improve, support, and operate its products and services. For the avoidance of doubt, Axon will not disclose any Usage and Operations Data that includes Confidential Information with a third party except (a) in accordance with the relevant confidentiality provisions in the Agreement, or (b) to the extent the Usage and Operations Data is, in accordance with applicable data protection laws, anonymized, de-identified, and/or aggregated such that it can no longer directly or indirectly identify Customer or any particular individual.

11. After Termination. Axon will not delete Customer Content for ninety (90) days following termination. Axon Cloud Services will not be functional during these ninety (90) days other than the ability to retrieve Customer Content.

Customer will not incur additional fees if Customer downloads Customer Content from Axon Cloud Services during this time. Axon has no obligation to maintain or provide Customer Content after these ninety (90) days and will thereafter, unless legally prohibited, delete all Customer Content. Upon request, Axon will provide written proof that Axon successfully deleted and fully removed all Customer Content from Axon Cloud Services.

12. Post-Termination Assistance. Axon will provide Customer with the same post-termination data retrieval assistance that Axon generally makes available to all customers. Requests for Axon to provide additional assistance in downloading or transferring Customer Content, including requests for Axon’s data egress service, will result in additional fees and Axon will not warrant or guarantee data integrity or readability in the external system.

13. U.S. Government Rights.

13.1.If Customer is a U.S. Federal department or using Axon Cloud Services or Software on behalf of a U.S.

Federal department, Axon Cloud Services, Software, or Software Documentation are provided as a "commercial item," "commercial computer software," "commercial computer software documentation," and "technical data", as defined in the Federal Acquisition Regulation (“FAR”) and Defense Federal Acquisition Regulation Supplement (“DFARS”). If Customer is using Axon Cloud Services or Software on behalf of the U.S. Government and these terms are inconsistent in any respect with federal law, Customer will immediately discontinue use of Axon Cloud Services.

13.2.Use, duplication or disclosure by the U.S. Government is subject to restrictions as set forth in DFAR 255.227-7013(c)(1)(ii) et. Seq. or 252.211-7015, or FAR 52.227-19(a)-(d), as applicable, or similar clauses in the NASA FAR Supplement.

14. Export Controls. None of the Software, Software Documentation, or underlying information, may be downloaded or otherwise exported, directly or indirectly, without the prior written consent, if required, of the office of Export Administration of the United States, Department of Commerce, nor to any country to which the U.S. has embargoed goods, to any person on the U.S. Treasury Department’s Specially Designated Nationals or Blocked Persons List, or the U.S. Department of Commerce’s Denied Persons List.

15. Survival. Upon any termination of this Agreement, the following sections in this Appendix will survive: Customer Owns Customer Content, Restrictions, Export Controls, Privacy, Storage, Disclaimer, and Customer Responsibilities.

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II. Axon Cloud Services

1. General. The following apply to all Axon Cloud Services unless otherwise provided in the Product Specific Terms and Conditions Section:

1.1. Access. Upon Axon granting Customer a subscription to Axon Cloud Services, Customer may access and use Axon Cloud Services to store and manage Customer Content. Customer may not exceed the total number of End Users specified in the Quote. Axon Air requires an Axon Evidence subscription for each drone operator. For Axon Evidence access granted solely for TASER, Customer may access and use Axon Evidence only to store and manage TASER CEW data ("TASER Data") and Customer may not upload nonTASER Data to Axon Evidence.

1.2. Privacy. Customer’s use of Axon Cloud Services is subject to the Axon Cloud Services Privacy Notice, a current version of which is available at https://www.axon.com/legal/cloud-services-privacy-policy.

1.3. Storage.

1.3.1. Unlimited Axon Device Storage. For Axon Unlimited Device Storage subscriptions, Customer may store unlimited data in Customer's Axon Evidence account only if the Axon Device data is shared to Customer through Axon Evidence from a partner agency using Axon Evidence, or the data originates from Axon Capture or an Axon Device.

1.3.2.Third-Party Unlimited Storage. For Third-Party Unlimited Storage the following restrictions apply: (i) it may only be used in conjunction with a valid Axon Evidence user license; (ii) is limited to data of the law enforcement Customer that purchased the Third-Party Unlimited Storage and the Axon Evidence End User; (iii) Customer is prohibited from storing data for other customers or law enforcement agencies; and (iv) Customer may only upload and store data that is directly related to (1) the investigation of, or the prosecution or defense of a crime, (2) common law enforcement activities, or (3) any Customer Content created by Axon Devices or Axon Evidence.

1.3.3. A-la-Carte Storage. If Customer purchases a-la-carte storage and Customer exceeds the purchased storage amounts, Axon may charge Customer additional fees for exceeding purchased storage amounts.

1.3.4. Retention Policy. Customer must categorize and set a retention period for all Customer Content in accordance with applicable law and Customer policies within 30 days of upload. The retention policy can be from thirty (30) days to ninety-nine (99) years. Only 10% of Customer Content may be set at 99 years.

1.3.5. Restrictions. Customer may not save live-streamed video, continuous video feeds, including from CCTV systems, fixed surveillance cameras, third-party camera systems, or any other camera (including an Axon Device) or monitoring system, even if such content is ingested, integrated, or accessed through Axon Evidence (“Streaming Video”) under the Axon Unlimited Storage Subscription. Customer may save clips of the Streaming Video under the Unlimited Storage Plan.

1.3.6. Archival Storage. Axon may place Customer Content in to archived storage if: (i) Customer Content has not viewed or accessed for six (6) months, or (ii) Customer Content has not been categorized within thirty (30) days of upload. Customer Content in archival storage will not have immediate availability and may take up to twenty-four (24) hours to access.

1.3.7.Location of Storage. Axon may transfer Customer Content to third-party subcontractors for storage. If Customer is located in the United States, Canada, or Australia, Axon will ensure all Customer Content stored in Axon Cloud Services remains in the country where Customer is located. Axon will determine the locations of data centers for storage of Customer in accordance with the Agreement.

1.4. Axon Cloud Services Warranty. AXON DISCLAIMS ANY WARRANTIES OR RESPONSIBILITY FOR

DATA CORRUPTION OR ERRORS BEFORE CUSTOMER UPLOADS DATA TO AXON CLOUD

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SERVICES. SERVICE OFFERINGS WILL BE SUBJECT TO THE AXON CLOUD SERVICES SERVICE

LEVEL AGREEMENT, A CURRENT VERSION OF WHICH IS AVAILABLE AT HTTPS://WWW.AXON.COM/PRODUCTS/AXON-EVIDENCE/SLA.

2. Cloud Services- Product Specific Terms and Conditions. Notwithstanding any other provision in the Agreement, the following terms and conditions apply to the specific Axon Cloud Services purchased:

2.1. Draft One. Axon may impose usage restrictions if a single user generates more than three hundred (300) reports per month for two or more consecutive months.

2.2. Auto-Tagging. Axon Auto-Tagging consists of the development of a module to allow Axon Evidence to interact with Customer’s Computer-Aided Dispatch ("CAD") or Records Management Systems ("RMS"). This allows End Users to auto-populate Axon video meta-data with a case ID, category, and location-based on data maintained in Customer’s CAD or RMS.

2.3. Auto-Transcribe.

2.3.1. A-La-Carte Minutes. If Customer purchases A-La-Carte Auto-Transcribe minutes, Customer may utilize Axon Auto-Transcribe, subject to the number of minutes allowed on the Quote. Customers cannot roll over unused minutes to future Auto-Transcribe terms. Axon may charge Customer additional fees for exceeding the number of purchased minutes. Axon Auto-Transcribe minutes expire one year after being provisioned to Customer by Axon.

2.3.2. Axon Unlimited Transcribe. If Customer purchases an Unlimited Transcribe subscription, Customer may utilize Axon Auto-Transcribe with no limit on the number of minutes. Unlimited Transcribe includes automatic transcription of all Axon BWC and Axon Capture footage. With regard to Axon Interview Room, Axon Fleet, Axon Community Link, or third-party transcription, transcription must be requested on demand. Notwithstanding the foregoing, Axon may limit usage after 5,000 minutes per user per month for multiple months in a row. Axon will not bill for overages.

2.4. FUSUS.

2.4.1. Axon Positioning Services. Axon cameras may offer a feature to enhance location services where GPS/GNSS signals may not be available, for instance, within buildings or underground. Customer administrators can manage their choice to use this service within the administrative features of Axon Cloud Services. If Customer chooses to use this service, Axon must also enable the usage of the feature for Customer’s Axon Cloud Services tenant. Customer will not see this option with Axon Cloud Services unless Axon has enabled Wi-Fi Positioning for Customer’s Axon Cloud Services tenant.

2.4.2. Axon Body LTE Requirements. FUSUS is only available and usable with an LTE enabled body-worn camera. Axon is not liable if Customer utilizes the LTE device outside of the coverage area or if the LTE carrier is unavailable. LTE coverage is available in the United States including U.S. territories.

Additional verification will be required for use in select international regions. Axon may utilize a carrier of Axon’s choice to provide LTE service. Axon may change LTE carriers during the Term without Customer’s consent.

2.4.3. Axon Fleet LTE Requirements. Axon FUSUS is only available and usable with a compatible Fleet system configured with LTE modem and service. Customer is responsible for providing LTE service for the modem. Coverage and availability of LTE service is subject to Customer’s LTE carrier.

2.4.4. Data Privacy. Axon may collect, use, transfer, disclose and otherwise process Customer Content in the context of facilitating communication of data with Customer through their use of FUSUS cloud services, FUSUS app (iOS or Android interface), complying with legal requirements, monitoring the Customer’s use of FUSUS systems, and undertaking data analytics.

2.5. LTE Networks. Partner networks are made available as-is and the carrier makes no warranties or representations as to the availability or quality of roaming service provided by carrier partners, and the carrier will not be liable in any capacity for any errors, outages, or failures of carrier partner networks.

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Customer expressly understands and agrees that it has no contractual relationship whatsoever with the underlying wireless service provider or its affiliates or contractors when LTE service is provided by Axon and Customer is not a third-party beneficiary of any agreement between Axon and the underlying carrier.

2.6. TASER Data Science Program. Axon will provide Customer with Transformed Data (as defined below).

2.6.1. Definitions.

2.6.1.1."Provided Data" means de-identified, de-personalized, data derived from Customer's TASER energy weapon deployment reports, related TASER energy weapon logs, body-worn camera footage, and incident reports.

2.6.1.2."Transformed Data" means the Provided Data used for the purpose of quantitative evaluation of the performance and effectiveness of TASER energy weapons in the field across a variety of circumstances.

2.6.2.License to Axon. If Customer purchases the TASER Data Science Program, Customer grants Axon, its affiliates, and assignees an irrevocable, perpetual, fully paid, royalty-free, and worldwide right and license to use Provided Data solely for the purposes of this Agreement and to create Transformed Data. Customer shall own all rights and title to Provided Data. Axon shall own all rights and title to Transformed Data and any derivatives of Transformed Data.

2.6.3.License to Customer. Axon grants to Customer an irrevocable, perpetual, fully paid, royalty-free, license to use to TASER Data Science report for its own internal purposes. The Data Science report is provided “as is” and without any warranty of any kind.

2.6.4. Deletion of Provided Data. In the event Customer seeks Axon’s deletion of Provided Data, it may submit a request to [email protected]. Where reasonably capable of doing so, Axon will implement the request but at a minimum will not continue to collect Provided Data from Customer.

2.7. Community Link.

2.7.1. Community Link Security. Axon will not treat Community Link Customer Content in accordance with FBI CJIS Security Policy requirements and does not agree to the CJIS Security Addendum for this engagement or any other security or privacy related commitments that have been established between Axon and Customer, such as ISO 27001 certification or SOC 2 Reporting.

2.7.2.License and Intellectual Property. Customer grants Axon, its affiliates, and assignees the irrevocable, perpetual, fully paid, royalty-free, and worldwide right and license to use Community Link Customer Content for internal use. Customer acknowledges that Axon may make any lawful use of Community Link Customer Content and any derivative of Customer Content including, without limitation, the right to monetize, redistribute, make modification of, and make derivatives of, the surveys, survey responses and associated data, and Customer will have no intellectual property right in any good, service, media, or other product that uses Community Link Customer Content. Axon may not release Community Link Customer Content to any third party under this right that is not aggregated and de-identified.

2.8. Dedrone.

2.8.1. Definitions.

2.8.1.1.“Dedrone Data” means data that Axon maintains regarding a wide variety of drone models and manufacturers in the marketplace (“DedroneDNA”, formerly “DroneDNA”), as well as usability information that Axon collects regarding the performance of the Dedrone Software and Dedrone Hardware, aggregate or de-identified Collected Data compiled or used by Axon in accordance with Section 2.11.5, and any other information that Axon makes available to Customer by means of the Dedrone Software.

2.8.1.2.“Dedrone Hardware” means the Axon drone detection hardware sensor or mitigation products set forth on a Quote and does not include any Third-Party Hardware.

2.8.1.3.“Sensor” means a radio frequency, video, radar or other hardware sensor for drone detection purchased by Customer from Axon or obtained from any third-party vendor.

2.8.1.4.“Dedrone Software” means (i) Axon’s proprietary drone-tracking software, known as DedroneTracker (formerly DroneTracker), whether deployed on-premise or hosted by Axon as

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a cloud-based solution, (ii) Axon’s video analytics software (currently known as Analytics Server), and/or (iii) software and/or firmware deployed or installed on the Dedrone Hardware or available for download and installation onto Customer’s Third-Party Hardware.

2.8.1.5.“Third-Party Hardware” means hardware products owned by Customer or purchased by Customer from third parties that are used by Customer in conjunction with the Software.

2.8.2.License to Customer. Axon grants Customer a royalty-free, nonexclusive, nontransferable, worldwide right during each Dedrone Subscription Term to use the Dedrone Software, including the Dedrone Data and Collected Data, subject to the terms of the Agreement and this Section (the “License”). Customer must purchase a License to the Dedrone Software for each unit of Dedrone Hardware and/or Third-Party Hardware using Dedrone Software.

2.8.3. Compliance. Customer will ensure that none of the Dedrone Products are directly or indirectly exported, re-exported, or used to provide services in violation of such export laws and regulations. If Customer uses a radio jammer, or any other controlled device, in connection with the Dedrone Software, Customer represents to Axon that it is authorized to do so by the relevant authorities, that it will do so only in accordance with such authorization, and it will provide supporting documentation regarding such authorization upon request. Axon shall not be liable if any government export authorization is delayed, denied, revoked, restricted or not renewed, nor shall any such delay, denial, revocation, restriction or non-renewal constitute a breach of the Agreement by Axon.

2.8.4. Data Protection. If Customer licenses Dedrone Software, the Dedrone Software may collect and send to servers owned, operated or controlled by Axon, data or other information regarding Customer’s use of the Dedrone Software, which may include (i) information generated by each Sensor deployed by Customer, including the date, time, and duration of the detection of the drone, as well as the locations of the detected drones, remote controls, and the Sensor itself (collectively, “Sensor Data”), and (ii) video recording of the detected drones, including flight path ("Video Data") (Sensor Data and Video Data are collectively referred to as “Collected Data”).

2.8.5. Use of Collected Data. Axon has the right to use Collected Data for any purpose, including: (i) improving or analyzing any Dedrone Product; (ii) analyzing any Dedrone Product or the performance of any Dedrone Product; or (iii) compiling or using aggregate or de-identified Collected Data with other customers, or government and law enforcement entities, with or without compensation.

Customer acknowledges that Axon may learn from the performance or use of any Dedrone Product, and Axon shall have the sole right to exploit any modification, enhancement or improvement of any Dedrone Product resulting from such learning.

2.8.6. Axon Property. Axon owns and retains all rights, title, and interest in and to the Dedrone Data, Collected Data, the Dedrone Software, and all intellectual property embodied in the Dedrone Hardware.

2.9. Axon 911 Products (Prepared and Carbyne)

2.9.1. Definitions.

2.9.1.1.“Solution” means the Axon 911 Software and/or Platform which Axon makes available to Customer pursuant to this Section, which includes Carbyne and Prepared 911 Products and Services. The Solution does not include Third Party Content or Third-Party Services.

2.9.1.2. “Third Party Content” means applications, materials, data and information, such as location, transcriptions, translations and any output generated by AI powered tools, III. Software

1. Software - General

1.1. Licenses.

1.1.1.Software License. Subject to Customer’s compliance with this Agreement (including the Quote) and any applicable documentation, and payment of applicable fees, Axon grants Customer a nonexclusive, non-transferable, revocable, limited, non-sublicensable, royalty-free license during the applicable Subscription Term to install, use, and display the Axon Software solely for Customer’s

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internal purposes and solely for data communication with Axon Devices or Cloud Services for the number and type of licenses purchased.

1.1.2.Firmware License. Subject to Customer’s compliance with this Agreement and payment of applicable fees, Axon grants Customer a non-exclusive, non-transferable, non-sublicensable, royaltyfree, perpetual limited license to use the Axon Firmware solely on Axon Devices.

1.2. Actions Required Upon Termination. Upon termination of the license associated with this Agreement, Customer agrees to destroy all copies of the Software and other text and/or graphical documentation, whether in electronic or printed format, that describes the features, functions and operation of the Software that is provided by Axon to Customer ("Software Documentation") or return such copies to Axon.

Regarding any copies of media containing regular backups of Customer's computer or computer system, Customer agrees not to access such media for the purpose of recovering the Software or online Software Documentation.

2. Software – Product Specific.

2.1. Wireless Offload Server. Upon request by Axon, Customer will provide Axon with access to Customer’s store and forward servers solely for troubleshooting and maintenance.

2.2. Investigate- Third-Party Licenses (On-Premises Software Only). This Section applies solely to Customer’s on-premises deployment of the Software and does not apply to any cloud-hosted or SaaS offerings. Axon licenses several third-party codecs and applications that are integrated into the Software.

Customer agrees to and understands that an active support contract with Axon is required for access to all of the following features: DNxHD output formats, decoding files via the "fast indexing" method, proprietary file metadata, telephone and email support, and all future updates to the Software. If Customer terminates the annual support contract with Axon, the features listed above will be disabled within the Software.

IV. Axon Application Programming Interface (“API”)

1. General

1.1. Definitions.

1.1.1."Active Channel" means a third-party system that is continuously communicating with an Axon Digital Evidence Management System.

1.1.2."API Client" means the software that acts as the interface between Customer’s computer and the server, which is already developed or to be developed by Customer.

1.1.3. “API Content” All content related to API Service, excluding Customer Content or Customer’s API Client Content, is considered Axon’s API Content, including: (i) the design, structure and naming of API Service fields in all responses and requests; (ii) the resources available within API Service for which Customer takes actions on, such as Evidence, cases, users, or reports; (iii) the structure of and relationship of API Service resources; and (iv) the design of API Service, in any part or as a whole.

1.1.4."API Interface" means software implemented by Customer to configure Customer’s independent API Client software to operate in conjunction with the API Service for Customer’s authorized Use.

1.1.5."Axon Digital Evidence Management System" means Axon Evidence or Axon Evidence Local, as specified in the Channel Services Statement of Work.

1.1.6."Axon Evidence Partner API, API or Axon API" (collectively "API Service") means Axon’s API which provides a programmatic means to access data in Customer’s Axon Evidence account or integrate Customer’s Axon Evidence account with other systems.

1.1.7."Inactive Channel" means a third-party system that will have a one-time communication to an Axon Digital Evidence Management System.

1.1.8."Use" means any operation on Customer’s data enabled by the supported API functionality.

1.2. Purpose and License.

1.2.1. Customer may use API Service and data made available through API Service, in connection with an API Client developed by Customer. Axon may monitor Customer’s use of API Service to ensure quality,

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improve Axon Devices and Services, and verify compliance with this Agreement. Customer agrees to not interfere with such monitoring or obscure from Axon Customer’s use of API Service. Customer will not use API Service for commercial use.

1.2.2.Axon grants Customer a non-exclusive, non-transferable, non-sublicensable, worldwide, revocable right and license during the Term to use API Service, solely for Customer’s Use in connection with Customer’s API Client.

1.3. Limitations. Axon reserves the right to set limitations on Customer’s use of the API Service, such as a quota on operations, to ensure stability and availability of Axon’s API. Axon will use reasonable efforts to accommodate use beyond the designated limits.

1.4. Configuration. Customer will work independently to configure Customer’s API Client with API Service for Customer’s applicable Use. Customer will be required to provide certain information (such as identification or contact details) as part of the registration. Registration information provided to Axon must be accurate.

Customer will inform Axon promptly of any updates. Upon Customer’s registration, Axon will provide documentation outlining API Service information.

1.5. API Updates. Axon may update or modify the API Service from time to time ("API Update"). Customer is required to implement and use the most current version of API Service and to make any applicable changes to Customer’s API Client required as a result of such API Update. API Updates may adversely affect how Customer’s API Client accesses or communicates with API Service or the API Interface. Each API Client must contain means for Customer to update API Client to the most current version of API Service. Axon will provide support for one (1) year following the release of an API Update for all depreciated API Service versions.

2. API – Product Specific

2.1. Axon Channel Services

2.1.1.Scope. When Customer has a third-party system or data repository from which Customer desires to share data with Axon Digital Evidence Management, Axon will facilitate the transfer of Customer’s thirdparty data into or out of Axon’s Digital Evidence Management System, as defined in the Channel Services Statement of Work ("Channel Services SOW"). Channel Services will not delete any Customer Content. Customer is responsible for verifying all necessary data is migrated correctly and retained per Customer policy.

2.1.2.Purpose and Use. For Active Channels, Customer is responsible for any changes to a third-party system that may affect the functionality of the Channel Service. An Axon Field Engineer may require access to Customer’s network and systems to perform the Services described in the Channel Services SOW. Customer is responsible for facilitating this access per all laws and policies applicable to Customer.

V. Artificial Intelligence (“AI”)

1. Definitions.

1.1. “AI Technology” means artificial intelligence functionalities embedded in Axon’s Products, which may include: (a) Enhanced Evidence Management; (b) AI-powered redaction tools; (c) Large Language Modelbased tools (d) Predictive Analytics for operational insights; or (e) Natural Language Processing (NLP) for text and speech analysis.

1.2. “Bias Mitigation” means strategies and techniques used to identify, measure, and minimize bias in AI Technology.

2. Axon Responsibilities

2.1. Data Use. Unless otherwise agreed to in writing, Axon and Axon’s subprocessors will not train their models on Customer Content.

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2.2. Ethical AI Development. Axon shall: (a) follow its responsible innovation framework; (b) engage with the Ethics and Equity Advisory Council (EEAC) for feedback; (c) conduct testing to minimize bias and ensure reliability; and (d) implement Bias Mitigation techniques in model development and deployment.

3. Customer Responsibilities and Disclaimers.

3.1. Use of AI Technologies. Customer acknowledges that AI Technology is assistive and not designed to replace human review and judgement. Customer must: (a) review AI-generated outputs to ensure accuracy and appropriateness; (b) maintain control over Customer Content shared with AI Technologies (c) comply with applicable laws when using Axon AI Technology and Axon Services; and (d) monitor for potential issues with AI outputs, including false positives or negatives.

3.2. RESTRICTIONS. AI TECHNOLOGY IS NOT DESIGNED FOR EMERGENCIES, UNLESS EMERGENCY

USE CASES ARE DESCRIBED IN THE APPLICABLE PRODUCT DOCUMENTATION AND IN SUCH CASES, USERS SHOULD CONTACT APPROPRIATE EMERGENCY SERVICES DIRECTLY. AXON

DISCLAIMS LIABILITY FOR QUERIES CONTAINING PROHIBITED CONTENT, SUCH AS HATE, SEXUAL MATERIAL, OR VIOLENCE, AND RESERVES THE RIGHT TO RESTRICT SUCH USAGE.

3.3. HEALTHCARE. AXON CLOUD SERVICES THAT LEVERAGE AI TECHNOLOGY, E.G.,

TRANSCRIPTION AND TRANSLATION, MUST NOT BE USED BY HEALTHCARE PROVIDERS (SUCH

AS DOCTORS, NURSES, PARAMEDICS) FOR THE PURPOSE OF PROVIDING HEALTHCARE SERVICES, AND SHALL ONLY BE USED FOR THE PURPOSE OF HEALTHCARE PROVIDERS DEESCALATING CONFRONTATIONS, UNLESS USE BY HEALTHCARE PROVIDERS TO PROVIDE

SAFER AND MORE EFFICIENT EMERGENCY RESPONSE HEALTHCARE SERVICES IS DESCRIBED IN PRODUCT DOCUMENTATION.

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Schedule 1 to Software and Cloud Services Terms of Use Appendix Axon Customer Experience Improvement Program Appendix
The ACEIP is designed to accelerate Axon’s development of technology, such as building and supporting automated features, aiming to increase safety within communities and efficiency in public safety. Axon may make limited use of Customer Content from participating customers to develop, improve, and support current and future Axon products (collectively, “ACEIP Purposes”). ACEIP has 2 modes of participation, Basic and Custom. Customer is enrolled in ACEIP Basic by default. If Customer does not want to participate in ACEIP Basic, ACEIP Custom, or both, Customer can revoke its consent at any time via email to [email protected].

1. Axon Obligations

1.1 ACEIP Basic
When Axon uses Customer Content for ACEIP Purposes, Axon will:
• Use Customer Content only for ACEIP Purposes.
• Prohibit direct human access to Customer Content, including by Axon personnel and subprocessors, except as needed to perform or validate deletion.
• Retain Customer Content only as long as needed to create Transformed Content (defined below) and validate the transformations.
• Apply privacy-preserving transformations that remove identifying information appropriate to the use case (“Transformed Content”). AI model weights and similar insights that do not contain Customer Content are Transformed Content. Transformed Content is not Customer Content. • Retain and permit direct human access to Transformed Content for ACEIP Purposes. • Maintain security, privacy, and data governance programs as described in the Software and Cloud Services Terms of Use Appendix, and apply them to ACEIP.

1.2 Transparency Portal Publication
Before activating a use case, Axon will publish it on the Axon Transparency Portal (https://www.axon.com/aceipenterprise), including the product development purpose, data types involved, and privacy-preserving techniques used.

Axon will also notify ACEIP participants when the Transparency Portal is updated with a new or materially changed use case. Fifteen (15) calendar days after notification, Axon may activate the use case for all Basic participants.

1.3 Opt Out
Customer may opt out of ACEIP Basic at any time via [email protected]. Axon endeavors to implement opt outs within fifteen (15) calendar days. Transformations of Customer Content cease when Axon implements the opt out. Axon may retain Transformed Content created before it implemented the opt out request.

2. ACEIP Custom
Custom use cases may be governed by separate written terms between Axon and Customer. Those terms will control that use case. Please direct inquiries regarding Customer participation to [email protected].

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Axon Device Appendix
I. General. The following terms and conditions apply to any purchase, deployment, and use of Axon-manufactured Devices or third-party hardware products provided under the Agreement.

1. Warnings. See www.axon.com/legal for the most current Axon Device warnings.

2. Customer Responsibilities. Customer is responsible for (a) Customer’s use of Axon Devices; (b) Customer or a Customer-authorized user’s breach of this Agreement or violation of applicable law; (c) disputes between Customer and a third-party over Customer’s use of Axon Devices; and (d) secure and sustainable destruction and disposal of Axon Devices at Customer’s cost in accordance with applicable law or regulations.

3. Installation. In certain circumstances, Axon may use a third party authorized and trained by Axon to install products. Axon will not be liable for the failure of any Axon hardware to operate per specifications if such failure results from installation not performed by, or as directed by Axon or Axon’s third party installer.

4. Shipping. Axon may make partial shipments and ship Axon Devices from multiple locations. All shipments are EXW (Incoterms 2020) via common carrier. Title and risk of loss pass to Customer upon Axon’s delivery to the common carrier. Customer is responsible for any shipping charges in the Quote.

II. General Warranty.

1. Axon Limited Warranty. Axon warrants that Axon-manufactured Devices, except for TASER devices (see below for TASER warranty), are free from defects in workmanship and materials for one (1) year from the date of Customer’s receipt, except Signal Sidearm which Axon warrants for thirty (30) months from Customer’s receipt, and Axon-manufactured accessories which Axon warrants for ninety (90) days from Customer’s receipt (“Limited Warranty”).

2. General Warranty Terms. The following apply to all Axon-manufactured Devices excluding TASER weapons:

2.1. Extended Warranty. If the Quote includes an extended warranty, the extended warranty coverage period begins upon the expiration of the Limited Warranty. The maximum warranty period for an individual Axon Device will be five (5) years including the initial Limited Warranty.

2.2. Claims. If Axon receives a valid warranty claim for an Axon-manufactured Device during the warranty term, Axon’s sole responsibility is to repair or replace the Axon-manufactured Device with the same or like Axonmanufactured Device, at Axon’s option. A replacement Axon-manufactured Device will be new or like new.

Axon will warrant the replacement Axon-manufactured Device for the longer of (a) the remaining warranty of the original Axon-manufactured Device or (b) ninety (90) days from the date of repair or replacement.

If Customer exchanges an Axon-manufactured Device or part, the replacement item becomes Customer’s property, and the replaced item becomes Axon’s property. Before delivering an Axon-manufactured Device for service, Customer must upload Axon-manufactured Device data to Axon Evidence or download it and retain a copy. Axon is not responsible for any loss of software, data, or other information contained in storage media or any part of the Axon-manufactured Device sent to Axon for service.

3. Spare Axon Devices. At Axon's reasonable discretion, Axon may provide Customer a predetermined number of spare Axon Devices detailed in the Quote ("Spare Axon Devices"). Spare Axon Devices are intended to replace broken or non-functioning units while Customer submits the broken or non-functioning units through Axon’s warranty return process. Axon will repair or replace the unit with a replacement Device. Axon assumes no liability or obligation in the event Customer does not utilize Spare Axon Devices for the intended purpose.

4. Limitations and Disclaimer.

4.1.1.LIMITATION. AXON’S WARRANTY EXCLUDES DAMAGE RELATED TO: (A) FAILURE TO FOLLOW AXON DEVICE USE INSTRUCTIONS; (B) AXON DEVICES USED WITH EQUIPMENT NOT

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MANUFACTURED OR RECOMMENDED BY AXON; (C) ABUSE, MISUSE, OR INTENTIONAL DAMAGE TO AXON DEVICE; (D) FORCE MAJEURE; (E) AXON DEVICES REPAIRED OR MODIFIED BY PERSONS OTHER THAN AXON WITHOUT AXON’S WRITTEN PERMISSION; OR (F) AXON DEVICES WITH A DEFACED OR REMOVED SERIAL NUMBER. AXON’S WARRANTY WILL BE VOID IF CUSTOMER RESELLS AXON DEVICES.

4.1.2. DISCLAIMER. AXON DEVICES AND SERVICES THAT ARE NOT MANUFACTURED, PUBLISHED OR PERFORMED BY AXON ("THIRD-PARTY PRODUCTS") ARE NOT COVERED BY AXON’S

WARRANTY AND ARE ONLY SUBJECT TO THE WARRANTIES OF THE THIRD-PARTY PROVIDER OR MANUFACTURER.

4.1.3.EXCLUSIVE WARRANTY. TO THE EXTENT PERMITTED BY LAW, THE WARRANTIES AND REMEDIES IN THE AGREEMENT ARE EXCLUSIVE. AXON DISCLAIMS ALL OTHER WARRANTIES, REMEDIES, AND CONDITIONS, WHETHER ORAL, WRITTEN, STATUTORY, OR IMPLIED. IF

STATUTORY OR IMPLIED WARRANTIES CANNOT BE LAWFULLY DISCLAIMED, THEN SUCH

WARRANTIES ARE LIMITED TO THE DURATION OF THE WARRANTY DESCRIBED ABOVE AND BY THE PROVISIONS IN THIS AGREEMENT. CUSTOMER CONFIRMS AND AGREES THAT, IN

DECIDING WHETHER TO SIGN THIS AGREEMENT, CUSTOMER HAS NOT RELIED ON ANY

STATEMENT OR REPRESENTATION BY AXON OR ANYONE ACTING ON BEHALF OF AXON RELATED TO THE SUBJECT MATTER OF THIS AGREEMENT THAT IS NOT IN THIS AGREEMENT.

4.1.4.LOKI DRONE LIMITATIONS: IF CUSTOMER PURCHASES AXON LOKI, CUSTOMER

ACKNOWLEDGES THE LOKI DEVICE IS DESIGNED FOR OPERATION IN ENCLOSED,

CONTROLLED ENVIRONMENTS AND MUST BE USED IN COMPLIANCE WITH ALL APPLICABLE LAWS AND SAFETY GUIDELINES. OPERATION IN OPEN OR UNAPPROVED AREAS MAY RESULT

IN SIGNAL INTERFERENCE, LOSS OF CONTROL, OR DAMAGE, AND AXON ASSUMES NO

LIABILITY FOR IMPROPER USE, INCLUDING ANY RESULTING HARM OR REGULATORY VIOLATIONS.

III. Technology Assurance Plan (“TAP”).

1. TAP Device and Dock Refresh. If Customer has no outstanding payment obligations and purchased TAP, Axon will provide Customer a new Axon Device ("Device Refresh") and Axon Dock (“Dock Refresh”) as scheduled in the Quote. The Device Refresh and or Dock Refresh will be the same or like Axon Device, at Axon’s option, depending on what model Customer originally purchased. Axon makes no guarantee the Device Refresh will utilize the same accessories or Axon Dock. Accessories associated with any Dock Refreshes are subject to change at Axon discretion. Dock Refreshes will only include a new Axon Dock Bay configuration unless a new Axon Dock core is required for Axon Device compatibility. Under the Dedrone Refresh Program, the replacement hardware will be the same model as, or a comparable model to, the original. Axon is not obligated to provide next-generation or upgraded versions.

2. Refresh Delay. Axon may ship the Axon Device and Dock Refreshes as scheduled in the Quote without prior confirmation from Customer unless the Parties agree in writing otherwise at least ninety (90) days in advance, including shipment of the final Axon Devices and Dock Refreshes up to sixty (60) days before the end of the Subscription Term.

3. Upgrade Change. If Customer wants to upgrade Axon Device models from the current Axon Device to an upgraded Axon Device, Customer must pay the price difference between the MSRP for the current Axon Device and the MSRP for the upgraded Axon Device. Axon will not provide a refund if the model Customer desires has an MSRP less than the MSRP of Customer’s current Devices. The MSRP is the MSRP in effect at the time of the upgrade. Customer is responsible for the removal of previously installed hardware and installation of the Device Upgrade. For Dedrone devices Axon does not guarantee that next-gen products will be available at the time of refresh.

4. Return of Original Axon Device. Within thirty (30) days of receiving a Device or Dock Refresh, Customer must return the original Axon Devices to Axon or destroy the Axon Devices and provide a certificate of destruction to Axon including serial numbers for the destroyed Axon Devices. If Customer does not return or

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destroy the Axon Devices, Axon will deactivate the serial numbers for the Axon Devices received by Customer. Under the Dedrone Refresh Program, Customer is not required to return the original hardware upon receipt of the replacement.

5. Termination. TAP coverage terminates as of the date of termination and no refunds will be given in the event of termination or expiration of the Agreement.

IV. Axon Device Specific Terms and Conditions.

1. Axon Outpost.

1.1. Installation. Customers will obtain, maintain all legally required permits, authorizations, and/or licensing in order to place, maintain, and/or remove the Axon Outpost device at the installation location, including licenses or permits for fixed installation of poles. If mutually agreed by the Parties, Axon or an Axon authorized subcontractor may assist with obtaining the necessary local, state, or Federal approvals before installing Axon Outpost.

1.2. Vandalism or Motor Vehicle Accident Warranty. If Customer purchases the Vandalism and Accident warranty, Axon will provide up to two (2) replacements per warranty purchased if your Outpost is damaged due to vandalism or a motor vehicle accident. Axon will make a commercially reasonable effort to provide new installation free of charge, but installation may require additional cost. Axon does not provide refunds or credits if the warranty is not used during the Term of the Quote.

2. TASER Devices.

2.1. TASER Weapon Limited Warranty.

2.1.1. Definitions.

2.1.1.1. “Deployment” means use of the TASER weapon resulting in the discharge of the conducted energy weapon (“CEW”) cartridge probe. For TASER 10, each probe discharged is considered one (1) Deployment. For TASER 7, the dual probe discharged is considered one (1) Deployment.

2.1.1.2. “Pooled User” means the TASER weapon is assigned and used by multiple users.

2.1.1.3.“Single User” means the TASER weapon is assigned and used by on user.

2.1.1.4.“Training Device” means the TASER weapon is only used for training purposes.

2.1.2.Warranty Coverage. Axon warrants that each Axon-manufactured TASER Device is free from defects in workmanship and materials when assigned and used as a single-user device, pooled-user device, or training device, for the earlier of: (i) one (1) year from the date of Customer’s receipt or (ii) if an extended warranty is purchased for the Device, a total of up to 500 Deployments over 5 years. Used CEW cartridges are deemed to have operated properly.

2.1.3.TASER 10L or TASER Covert. If the TASER Device is a TASER 10L (TASER 10 Light) or Covert as defined in the Quote, Axon warrants that the TASER Device is free from defects in workmanship and materials for the earlier of one (1) year from the date of Customer's receipt or 100 Deployments.

Reduced Life TASER 10L Device has a maximum warranty that may be purchased that will warrant the Device for the earlier of two (2) years or 200 Deployments, including the Limited Warranty.

2.1.4. Registration. Prior to use of the TASER Device, Customer must register each TASER Device in TASER Device Axon Evidence tenancy as a Single User, Pooled User or Training Device. Failure to properly register the TASER Device prior to its use may void the warranty at Axon’s sole discretion.

2.2. Duty Cartridge Replenishment Plan. If the Quote includes "Duty Cartridge Replenishment Plan", Customer must purchase the plan for each CEW user. A CEW user includes officers that use a CEW in the line of duty and those that only use a CEW for training. Customer may not resell cartridges received. Axon will only replace cartridges used in the line of duty.

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2.3. Trade-in. If the Quote contains a discount on CEW-related line items and that discount is contingent upon the trade-in of hardware, Customer must return used hardware and accessories associated with the discount ("Trade-In Units") to Axon within the below prescribed timeline. Customer must ship batteries via ground shipping. Axon will provide Customer with a pre-paid shipping label for the return of the Trade-In Units. If Axon does not receive Trade-In Units within the timeframe below, Axon will invoice Customer the value of the trade-in credit. Customer may not destroy Trade-In Units and receive a trade-in credit.

Customer Size Days to Return from Start Date of TASER 10 Subscription Less than 100
officers
60 days
100 to 499 officers 90 days
500+ officers 180 days

2.4. Customer Warranty. If Customer is located in the US, Customer warrants and acknowledges that TASER 10 is classified as a firearm and is being acquired for official Customer use pursuant to a law enforcement agency transfer under the Gun Control Act of 1968.

3. Virtual Reality (VR) Headsets. Any additional virtual reality headsets purchased for use with Virtual Reality Media must be purchased from Axon.

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Professional Services Appendix
I. Implementation and Training

1. General

1.1. Delivery of Services. Axon personnel will work Monday through Friday, 8:30 a.m. to 5:30 p.m., except holidays. Axon will perform all on-site tasks over a consecutive timeframe. Axon will not charge Customer travel time by Axon personnel to Customer premises as work hours.

1.2. Access Computer Systems to Perform Services. Customer authorizes Axon limited access Customer’s relevant computers, network systems, facilities, and third-party systems as reasonably necessary for Axon to perform services as defined in this Agreement or in a SOW. Axon agrees to comply with Customer’s security requirements to access such systems, either remotely or on-site, as applicable. Axon will use commercially reasonable efforts to identify the required resources in advance. Customer is responsible for ensuring its infrastructure meets the minimum requirements and for the accuracy of the information provided.

1.3. Site Preparation. Axon will provide a copy of current user documentation for the Axon Devices ("User Documentation"), which will include all required environmental and operational specifications for the professional services and Axon Devices. Before installation of the Axon Devices, Customer must prepare the location(s) where Axon Devices are to be installed ("Installation Site") per the User Documentation and ensure all computers, hardware, vehicles, etc. are readily available in a suitable work area. Following installation, Customer must maintain the Installation Site per the environmental specifications. Axon will provide any updates to the User Documentation to Customer when Axon generally releases it. For any onsite training, Customer is responsible for providing a suitable work/training area.

1.4. Acceptance. When Axon completes professional services, Axon will present an acceptance form ("Acceptance Form") to Customer for signature to acknowledge completion. Customer must notify Axon in writing of any material non-conformance and the specific reasons for rejection within seven (7) calendar days from delivery of the Acceptance Form. Axon will address the issues and re-present the Acceptance Form for signature. If Customer does not sign the Acceptance Form or provide written notice of rejection within seven (7) calendar days of delivery, the professional services will be deemed accepted by Customer.

1.5. Customer Network. Customer is solely responsible for maintenance and functionality of the network. In no event will Axon be liable for loss, damage, or corruption of Customer’s network from any cause other than Axon’s negligence.

1.6. Utilization of Services. Customer must use professional services within six (6) months of the Effective Date.

II. Standard Implementation Activities

1. Except for on-demand training, all professional services include advance remote project planning and configuration support and assignment of a professional services manager to work with Customer on Customer’s deployment to determine which Services under each category are appropriate. Any onsite support is noted under each category. Additional on-site Services days may be purchased if needed.

2. Professional services may include the following activities depending on the service package purchased:

Implementation Activity Description
System Setup and Configuration Configure Customer settings in Axon systems based on Customer need User and Role Configuration Configure roles, permissions, categories, and retention settings and register users, as applicable
Device Registration Register devices and associate them with Customer domain

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Implementation Activity Description
Dock Configuration Configure locations and settings and authenticate Axon Dock systems (does not include physical mounting of docks)
System Troubleshooting Troubleshoot IT issues with Axon Evidence, or hardware system access System Admin Training
Step-by-step explanation and assistance for configuration of security, roles & permissions, categories & retention, and other specific settings for Axon Evidence.

Classroom and Practical Training Step-by-step explanation and assistance for Customer's configuration of product, functionality, and basic operation.

Evidence Sharing Training Tailored workflow instruction on sharing cases and evidence with local prosecuting agencies.

Best Practice Planning Provide considerations for policy / system operations and best practices Train-the-Trainer Instruction Train designated Customer instructors who can support any subsequent Customer training needs
User Go-Live Training End-user instruction and deployment support for E.com and device/operational training
Implementation Documentation Axon guides for: administrators, product implementation, network setup, categories & roles, and sample policies
Post Go-Live Review Review deployment and address operational issues

3. Service Package Scope

3.1. Body-Worn Camera Services
• BWC Full: Includes remote planning and up to four (4) consecutive on-site service days. • BWC Starter: Includes remote planning and one (1) on-site service day. • BWC Virtual: All Services delivered remotely.

3.2. CEW Services
• CEW Full: Includes on-site support and instructor training for up to three (3) instructors.

TABLE 1 – PROFESSIONAL SERVICES MATRIX
Implementation Activity BWC CEW VR Air Justice
Full Starter Virtual Full Starter On-Site Virtual
System Setup and Configuration ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
User and Role Configuration ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Device Registration ✔ — — ✔ ✔ — — — —
Dock configuration ✔ ✔ ✔ — — — — — —
System Troubleshooting ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
System Admin Training ✔ — — ✔ ✔ — — — —
Classroom and Practical Training — — — — — ✔ ✔ — —
Evidence Sharing Training ✔ — — — — — — — ✔
Train-the-Trainer Instruction ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Implementation Documentation ✔ ✔ ✔ ✔ ✔ — — — ✔
Best Practice Planning ✔ — — ✔ ✔ ✔ ✔ ✔ ✔
Post Go-Live Review ✔ — — ✔ ✔ — — — ✔

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• CEW Starter: Services delivered remotely with instructor training for one (1) instructor.

3.3. VR Services. Includes remote planning and one (1) on-site training day, with instructor training for up to five (5) instructors.

3.4. Axon Air Training. Includes system configuration and operational training. On-site training includes practical flight instruction; virtual training excludes flight training.

3.5. Axon Justice Implementation. Includes workflow configuration, disclosure configuration, go-live planning, and up to three (3) two (2) hour remote training sessions.

III. Additional Professional Services

1. Smart Weapon Transition Service. The Smart Weapon Transition Service includes:

1.1. Archival of CEW Firing Logs. Axon’s on-site professional services team will upload CEW firing logs to Axon Evidence from all TASER CEW Smart Weapons that Customer is replacing with newer Smart Weapon models.

1.2. Return of Old Weapons. Axon’s on-site professional service team will ship all old weapons back to Axon’s headquarters. Axon will provide Customer with a Certificate of Destruction.

1.2.1.*Note: CEW Full-Service packages for TASER 7 or TASER 10 include Smart Weapon Transition Service instead of 1-Day Device Specific Instructor Course.

2. Signal Sidearm Installation Service.

2.1. Purchases of 50 SSA units or more: Axon will provide one (1) day of on-site service and one professional services manager and will provide train the trainer instruction, with direct assistance on the first of each unique holster/mounting type. Customer is responsible for providing a suitable work/training area.

2.2. Purchases of less than 50 SSA units: Axon will provide a 1-hour virtual instruction session on the basics of installation and device calibration.

3. TASER On Demand Training. If the Quote includes a TASER On Demand Certification subscription, Customer will have on-demand access to TASER Instructor and TASER Master Instructor courses only for the duration of the TASER Subscription Term. Axon will issue a maximum of ten (10) TASER Instructor vouchers and ten (10) TASER Master Instructor vouchers for every thousand TASER subscriptions purchased. Customer shall utilize vouchers to register for TASER courses at their discretion within one (1) year of issuance; however, Customer may incur a fee for cancellations less than ten (10) business days prior to a course date or failure to appear to a registered course. Vouchers have no cash value and cannot be exchanged for any other Axon Device or Services. Any unused vouchers will be forfeited. A voucher does not include any travel or other expenses that might be incurred related to attending a course.

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Miscellaneous Clauses Appendix

1. Axon Aid. Upon mutual agreement between Axon and Customer, Axon may provide certain products and services to Customer as a charitable donation under the Axon Aid program. In such event, Customer expressly waives and releases any and all claims, now known or hereafter known, against Axon and its officers, directors, employees, agents, contractors, affiliates, successors, and assigns (collectively, "Releasees"), including but not limited to, on account of injury, death, property damage, or loss of data, arising out of or attributable to the Axon Aid program whether arising out of the negligence of any Releasees or otherwise, and forever releases and discharges all Releasees from liability under such claims. Customer expressly allows Axon to publicly announce its participation in Axon Aid and use its name in marketing materials. Axon may terminate the Axon Aid program without cause immediately upon notice to the Customer.

2. Free Trial.

2.1. Trial Period and License. At any time during the Term, the Parties may agree to a free trial of Axon Devices and Services new to the Customer (“Trial Products”) for a designated period (“Trial Period”) as reflected in a quote (“Trial Quote”). During the Trial Period, Axon grants Customer a nonexclusive, nontransferable, revocable license to use the Trial Products solely for Customer’s internal evaluation. Trial Products may include Axon beta software or firmware and may be subject to additional terms. Axon may limit the number of Trial Products and may supply refurbished Trial Products. ALL TRIAL PRODUCTS, ARE PROVIDED “AS IS” AND TO THE EXTENT NOT PROHIBITED BY LAW, AXON DISCLAIMS ALL LIABILITY REGARDLESS OF THE CLAIM.

2.2. Trial Quote Termination. Upon at least ten (10) business days’ prior written notice to Axon at any time prior to the end of the Trial Period, Customer may, as its sole option, terminate the free Trial Period and underlying Trial Quote associated with the Trial Products for convenience. Customer’s rights to the Trial Products will immediately terminate at the end of the Trial Period, and Customer will return any Trial Products hardware to Axon within ten (10) days after the effective date of such termination or expiration at the end of the Trial Period. Customer will return all Trial Products (excluding used CEW cartridges) in good working condition, minus normal wear and tear. If any individual component of the Trial Products is not returned, Axon may invoice Customer the MSRP of any of the unreturned items or damaged Trial Products, and Customer agrees to pay the invoice along with any applicable taxes and shipping. Axon may charge Customer if there is damage beyond normal wear and tear. Any Customer Content shall be stored and returned pursuant to the Software and Cloud Services Terms of Use Appendix.

3. Axon Event Offer Terms. If the Quote includes the provision of, or Axon otherwise offers, ticket(s), travel and/or accommodation for select events hosted by Axon (“Axon Event”), the following terms and conditions shall apply:

3.1. General. Subject to the terms and conditions specified below and those in the Agreement, Axon may provide Customer with one or more offers to fund Axon Event ticket(s), travel and/or accommodation for Customer-selected employee(s) to attend one or more Axon Events. By entering into the Agreement, Customer warrants that it is appropriate and permissible for Customer to receive the referenced Axon Event offer(s) based on Customer’s understanding of the terms and conditions outlined in this Axon Event Offer Appendix.

3.2. Attendee/Employee Selection. Customer shall have sole and absolute discretion to select the Customer employee(s) eligible to receive the ticket(s), travel and/or accommodation that is the subject of any Axon Event offer(s).

3.3. Compliance. It is the intent of Axon that any and all Axon Event offers comply with all applicable laws, regulations and ethics rules regarding contributions, including gifts and donations. Axon’s provision of ticket(s), travel and/or accommodation for the applicable Axon Event to Customer is intended for the use and benefit of Customer in furtherance of its goals, and not the personal use or benefit of any official or employee of Customer. Axon makes this offer without seeking promises or favoritism for Axon in any bidding arrangements. Further, no exclusivity will be expected by either party in consideration for the offer. Axon makes the offer with the understanding that it will not, as a result of such offer, be prohibited from any

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procurement opportunities or be subject to any reporting requirements. If Customer’s local jurisdiction requires Customer to report or disclose the fair market value of the benefits provided by Axon, Customer shall promptly contact Axon to obtain such information, and Axon shall provide the information necessary to facilitate Customer's compliance with such reporting requirements.

3.4. Assignability. Customer may not sell, transfer, or assign Axon Event ticket(s), travel and/or accommodation provided under the Agreement.

3.5. Availability. The provision of all offers of Axon Event ticket(s), travel and/or accommodation is subject to availability of funds and resources. Axon has no obligation to provide Axon Event ticket(s), travel and/or accommodation.

3.6. Revocation of Offer. Axon reserves the right at any time to rescind the offer of Axon Event ticket(s), travel and/or accommodation to Customer if Customer or its selected employees fail to meet the prescribed conditions or if changes in circumstances render the provision of such benefits impractical, inadvisable, or in violation of any applicable laws, regulations, and ethics rules regarding contributions, including gifts and donations.

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City Council
August 19, 2026

STAFF REPORT
To: City Council
From: Jonathan Nicks, City Manager
Prepared by: Brian Tully, Chief of Police
Subject: Accept a Fiscal Year 2026-2027 State of California - Office of Traffic Safety (OTS) grant under the Selective Traffic Enforcement Program (STEP) in the amount of $88,000
RECOMMENDATION:

Accept a Fiscal Year 2026-2027 State of California - Office of Traffic Safety (OTS) grant under the Selective Traffic Enforcement Program (STEP) in the amount of $88,000, authorize the City Manager or his designee to execute all necessary grant documents on behalf of the City of Indio, and direct the Finance Department to adjust appropriation and estimated revenue as reflected in the financial details section of this staff report.

SUMMARY:

The State of California's Office of Traffic Safety (OTS) awarded the City of Indio a Selective Traffic Enforcement Program (STEP) grant in the amount of $88,000 to support additional training and traffic-specific enforcement efforts within the City. The enforcement efforts include: DUI checkpoints, DUI saturation patrols, collaborative enforcement efforts, and specific enforcement efforts focused on traffic safety education, distracted driving, and pedestrian and bicycle safety.

BACKGROUND INFORMATION:

The State of California's Office of Traffic Safety’s mission is to administer traffic safety grant funds provided by the National Highway Traffic Safety Administration (NHTSA). The grant funds are intended to create and keep programs to address current and future traffic safety needs. OTS also mounts public awareness campaigns and acts as a primary traffic safety resource to enlist the help of the general public and the media to reinforce the ongoing education and enforcement efforts of local agencies. The City of Indio has historically received grants from OTS to support our Traffic Unit's enforcement and training efforts, with the latest grant award in FY 26 for $83,500 currently underway.

The purpose of the STEP grant is to utilize best practice strategies to reduce the number of individuals injured or killed in collisions involving alcohol and other factors. The strategies include special enforcement operations, encouraging enforcement, and public awareness in areas with a high number of crash factors. The program's strategies are also designed to earn media attention to enhance the overall deterrent effect. In addition to the staffing resources provided by the grant program, the grant will fund training for personnel and DUI checkpoint supplies.

AGENDA ITEM #9.17
Accept a Fiscal Year 2026-2027 State of California - Office of Traffic S... Page 700 of 953 FINANCIAL SUMMARY:

Current FY Financial
Impact:
$88,000 In current year budget: No
Current FY General
Fund Impact:
$0.00 Budget adjustment: Yes
Next FY Financial
Impact:
$0.00 Strategic Objective: Public Safety
Source of funds: Office of Traffic Safety - OTS Fund-Org-Object Reference:
225 - Various
Additional Financial Details:

Increase appropriations:
225-511016 Overtime $71,250.00
225-524028 Travel & Training $4,550.00
225-531060 Small Tools & Equipment $3,700.00
225-521064 Other Prof. & Tech. Svs $8,500.00
Increase estimated revenue:
225-402325 State Grant $ 88,000.00
ATTACHMENTS:

Attachment 1: Grant Agreement - PT27183 INDIO
APPROVAL(S):

Brian Tully, Chief of Police Approved - 04 Aug 2026
Ruby D. Walla, Director of Finance Approved - 04 Aug 2026 Steven Graham Pacifico, City Attorney Approved - 13 Aug 2026 Jonathan Nicks, City Manager Approved - 13 Aug 2026

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State of California – Office of Traffic Safety

GRANT AGREEMENT

GRANT NUMBER
PT27183

1. GRANT TITLE
Selective Traffic Enforcement Program (STEP)

2. NAME OF AGENCY 3. Grant Period
Indio From:

To:
10/01/2026
09/30/2027 4. AGENCY UNIT TO ADMINISTER GRANT
Indio Police Department

5. GRANT DESCRIPTION
Best practice strategies will be conducted to reduce the number of persons killed and injured in crashes involving alcohol and other primary crash factors. The funded strategies may include impaired driving enforcement, enforcement operations focusing on primary crash factors, distracted driving, night-time seat belt enforcement, special enforcement operations encouraging motorcycle safety, enforcement and public awareness in areas with a high number of bicycle and pedestrian crashes, and educational programs. These strategies are designed to earn media attention thus enhancing the overall deterrent effect. In addition, the department will participate in community collaboration and engagement activities to engage in conversations regarding traffic safety with community members.

6. Federal Funds Allocated Under This Agreement Shall Not Exceed:

Allocation is contingent upon availability of federal funds. $88,000.00

7. TERMS AND CONDITIONS: The parties agree to comply with the terms and conditions of the following which are by this reference made a part of the Agreement:
• Schedule A – Problem Statement, Goals and Objectives and Method of Procedure • Schedule B – Detailed Budget Estimate and Sub-Budget Estimate (if applicable) • Schedule B-1 – Budget Narrative and Sub-Budget Narrative (if applicable) • Exhibit A – Certifications and Assurances
• Exhibit B* – OTS Grant Program Manual
• Exhibit C – Grant Electronic Management System (GEMS) Access *The item shown with an asterisk (*), is hereby incorporated by reference and made a part of this agreement as if attached hereto. This document can be viewed at the OTS home web page under Grants: www.ots.ca.gov.

Use of OTS Grant Agreement template in lieu of the California Model Agreement (CMA) The California Office of Traffic Safety (OTS) utilizes its standardized OTS Grant Agreement template for awards. The format, structure, and uniformity of the OTS Grant Agreement template allows for processing through Grant Electronic Management System (GEMS). OTS’s approach to using the OTS Grant Agreement template is consistent with the California Model Agreement (CMA) developed by University of California Office of the President (UCOP) and directed by the Department of General Service (DGS). For more information, please review the OTS Grant Program Manual.

Pre-Agreement Work
No work shall commence and no costs shall be incurred prior to the grant start date or the grant agreement being fully signed and executed. Any such costs are incurred at the grantee’s own risk and may not be reimbursed.

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8. Approval Signatures
We, the officials named below, hereby swear under penalty of perjury under the laws of the State of California that we are duly authorized to legally bind the Grant recipient to the grant terms and conditions described herein.

IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.

A. GRANT DIRECTOR B. AUTHORIZING OFFICIAL
NAME:

TITLE:

EMAIL:

PHONE:

ADDRESS:

Andrew Leyva
Police Lieutenant
[email protected]
(760) 541-4598
46800 Jackson Street
Indio, CA 92201
NAME:

TITLE:

EMAIL:

PHONE:

ADDRESS:

Jonathan Nicks
City Manager
[email protected]
(760) 391-4089
46800 Jackson Street
Indio, CA 92201
(Signature) (Date) (Signature) (Date)
C. FISCAL OFFICIAL D. AUTHORIZING OFFICIAL OF OFFICE OF TRAFFIC SAFETY NAME:

TITLE:

EMAIL:

PHONE:

ADDRESS:

Ruby Walla
Finance Director
[email protected]
(760) 391-4029
46800 Jackson Street
Indio, CA 92201
NAME:

TITLE:

EMAIL:

PHONE:

ADDRESS:

Stephanie Dougherty
Director
[email protected]
(916) 509-3030
2208 Kausen Drive, Suite 300
Elk Grove, CA 95758
(Signature) (Date) (Signature) (Date)
E. ACCOUNTING OFFICER OF OFFICE OF TRAFFIC SAFETY 9. SAM INFORMATION NAME: Mary Khang SAM #:

REGISTERED
ADDRESS:

CITY:

ZIP+4:

L852WV7G8PK5
100 Civic Center Mall
Indio
92201-4434
ADDRESS: 2208 Kausen Drive Suite 300
Sacramento, CA 95758

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10. PROJECTED EXPENDITURES
FUND CFDA ITEM/APPROPRIATION F.Y. CHAPTER STATUTE PROJECTED

EXPENDITURES

AGREEMENT
TOTAL $88,000.00

AMOUNT ENCUMBERED BY THIS DOCUMENT
I CERTIFY upon my own personal knowledge that the budgeted funds for the current budget year are available for the period and purpose of the expenditure stated above, notwithstanding allocations contingent on availability of federal funds.
$88,000.00

PRIOR AMOUNT ENCUMBERED FOR THIS

AGREEMENT
$ 0.00
OTS ACCOUNTING OFFICER’S SIGNATURE DATE SIGNED TOTAL AMOUNT ENCUMBERED TO DATE $88,000.00

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State of California – Office of Traffic Safety

GRANT AGREEMENT
Schedule A

GRANT NUMBER
PT27183

1. PROBLEM STATEMENT
Describe the city, county, or jurisdiction this grant will impact.

The City of Indio is home to about 91,000 (2022 Census estimation) residents and an additional approx.35,000 part-time residents during the Winter/Spring seasons within 33 square miles. The community is located within the Coachella Valley in Southern California, which is home to longstanding events such as the Coachella and Stagecoach Music Festivals which brings a combined 400,000 additional visitors within a three-week period. We have 405 roadway miles in our city, with 13.2 miles consisting of 6-lane major arterial roads and 52.6 miles of 4-lane boulevard roadways. Between January 1, 2023 and December 31, 2025, the Indio Police Department reports 434 injury crashes, which resulted in 29 fatalities.

Describe the problem(s) to be addressed, supported by current and relevant crash data. (most recent calendar year data/stats).

The City of Indio continues to face traffic safety challenges related to impaired driving, distracted driving, speeding, and pedestrian-involved crashes. As the city’s population and visitor activity have increased, roadway congestion and exposure to high-risk behaviors have also risen, particularly during weekends, special events, and peak travel periods. Recent calendar year crash data show that alcohol- and drugimpaired driving remains a contributing factor in serious and fatal crashes, while pedestrian-related crashes have increased over time as more residents and visitors rely on walking and alternative transportation.

Misunderstandings regarding pedestrian right-of-way laws, combined with speeding and driver distraction, continue to place vulnerable road users at elevated risk.

The Indio Police Department employs a comprehensive traffic enforcement approach that extends beyond DUI saturation patrols to include speed enforcement, distracted driving operations, pedestrian and bicycle safety enforcement, and high-visibility patrols in crash-prone areas. DUI saturation patrols remain a key strategy for identifying and apprehending impaired drivers, and comparative research has shown they result in higher DUI arrest rates per hour than checkpoints (Greene, 2003). However, the Traffic Unit is also responsible for investigating serious injury and fatal traffic crashes. These investigations are complex and time-intensive; a single fatal crash investigation can require months to complete, significantly reducing available patrol time and limiting the unit’s ability to sustain proactive enforcement and education efforts using regular duty hours alone.

To address these challenges, the Indio Police Department will implement best-practice traffic safety strategies—including impaired driving enforcement, speed and distracted driving operations, and bicycle and pedestrian safety initiatives—on an overtime basis. This approach ensures consistent, high-visibility enforcement and education efforts without compromising critical investigative responsibilities. Indio has experienced measurable reductions in unsafe driving behaviors and traffic crashes, demonstrating that targeted, well-resourced traffic enforcement is effective. Continued grant support will allow the Department to sustain and expand these efforts, further improving roadway safety throughout the City of Indio.

The City of Indio has experienced a large number of speed-related crashes in the last three years: 2023 totaled 398, 2024 totaled 509, and 2025 totaled 440. Over that same period of time, there has been a steady increase of DUI crashes: 2023 totaled 25, 2024 totaled 28, and 2025 totaled 32.

Define the target population the grant intends to serve and how they are affected by the problem(s).

The primary population served by this grant includes the residents, commuters, and visitors who travel throughout the City of Indio on a daily basis. Indio’s roadways support a wide range of users, including families, seniors, students, workers, pedestrians, and bicyclists who rely on safe streets to get to school, work, medical appointments, and community events. As a regional destination, the city also experiences periodic surges in traffic from tourists, seasonal residents, and large special events, which place additional strain on local roadways and increase the risk of traffic crashes.

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Traffic safety concerns do not affect all groups equally. Seniors, pedestrians, bicyclists, and individuals with mobility limitations are especially vulnerable to serious injury when crashes occur. Young and inexperienced drivers face higher risks related to distracted driving and speeding, while impaired driving continues to pose a significant danger to everyone on the road, particularly during evenings, weekends, and special events. In addition, many residents and workers rely on walking, biking, or public transportation, increasing their exposure to unsafe driving behaviors and high-risk roadway conditions.

This grant will serve these populations through focused enforcement, practical public education, and datadriven strategies aimed at the behaviors that contribute most to crashes in Indio, including speeding, impaired driving, and distracted driving. Efforts will be directed to areas and times with the highest risk, while education and outreach will reinforce safe driving habits and increase awareness of traffic laws. Together, these approaches are intended to reduce crashes, prevent serious injuries, and make Indio’s streets safer for everyone who uses them.

2. PERFORMANCE MEASURES
A. Goals:

1. Reduce the number of persons killed in traffic crashes.

2. Reduce the number of persons injured in traffic crashes.

3. Reduce the number of pedestrians killed in traffic crashes.

4. Reduce the number of pedestrians injured in traffic crashes.

5. Reduce the number of bicyclists killed in traffic crashes.

6. Reduce the number of bicyclists injured in traffic crashes.

7. Reduce the number of persons killed in alcohol-involved crashes.

8. Reduce the number of persons injured in alcohol-involved crashes.

9. Reduce the number of persons killed in drug-involved crashes.

10. Reduce the number of persons injured in drug-involved crashes.

11. Reduce the number of persons killed in alcohol/drug combo-involved crashes.

12. Reduce the number of persons injured in alcohol/drug combo-involved crashes.

13. Reduce the number of motorcyclists killed in traffic crashes.

14. Reduce the number of motorcyclists injured in traffic crashes.

15. Reduce hit & run fatal crashes.

16. Reduce hit & run injury crashes.

17. Reduce nighttime (2100 - 0259 hours) fatal crashes.

18. Reduce nighttime (2100 - 0259 hours) injury crashes.

B. Objectives: Target Number

1. Issue a news release announcing the kick-off of the grant by December 31st. The kick-off news releases and media advisories, alerts, and materials must be emailed to the OTS Public Information Officer at [email protected], and copied to your OTS Coordinator, for approval 7 days prior to the issuance date of the release.
1 2. Participate and report data (as required) in the following campaigns; Quarter 1:

National Pedestrian Safety Month, National Walk to School Day, National Teen Driver Safety Week, NHTSA Winter Mobilization; Quarter 3: National Distracted Driving Awareness Month, National Motorcycle Safety Month, National Bicycle Safety Month, National Click it or Ticket Mobilization; Quarter 4: National Speed Prevention Campaigns, NHTSA Summer Mobilization, National Child Passenger Safety Week, and California's Pedestrian Safety Month.
12 3. Develop (by December 31) and/or maintain a “DUI BOLO” program to notify patrol and traffic officers to be on the lookout for identified repeat DUI offenders with a suspended or revoked license as a result of DUI convictions. Updated DUI BOLOs should be distributed to patrol and traffic officers monthly. Report on the outcomes of the “DUI BOLO” program.
12 4. Send law enforcement personnel to the NHTSA Standardized Field Sobriety Testing (SFST) (minimum 16 hours) POST-certified training. 2 5. Send law enforcement personnel to the NHTSA Advanced Roadside Impaired Driving Enforcement (ARIDE) 16 hour POST-certified training. 2

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6. Conduct DUI/DL Checkpoints. A minimum of 1 checkpoint should be conducted during the NHTSA Winter Mobilization and 1 during the Summer Mobilization. To enhance the overall deterrent effect and promote high visibility, it is recommended the grantee issue an advance press release and conduct social media activity for each checkpoint. For combination DUI/DL checkpoints, departments should issue press releases that mention DL's will be checked at the DUI/DL checkpoint. Signs for DUI/DL checkpoints should read "DUI/Driver's License Checkpoint Ahead." OTS does not fund or support independent DL checkpoints. Only on an exception basis and with OTS pre-approval will OTS fund checkpoints that begin prior to 1800 hours. When possible, DUI/DL Checkpoint screeners should be DRE- or ARIDE-trained.
2 7. Conduct DUI Saturation Patrol operation(s). 3

8. Conduct Traffic Enforcement operation(s), including but not limited to, primary crash factor violations.
3 9. Conduct highly publicized Distracted Driving enforcement operation(s) targeting drivers using hand held cell phones and texting.
5 10. Conduct highly publicized Motorcycle Safety enforcement operation(s) in areas or during events with a high number of motorcycle incidents or crashes resulting from unsafe speed, DUI, following too closely, unsafe lane changes, improper turning, and other primary crash factor violations by motorcyclists and other drivers. 1 11. Conduct highly publicized pedestrian and/or bicycle enforcement operation(s) in areas or during events with a high number of pedestrian and/or bicycle crashes resulting from violations made by pedestrians, bicyclists, and drivers. 1 12. Conduct Traffic Safety educational presentation(s) with an effort to reach community members. Note: Presentation(s) may include topics such as distracted driving, DUI, speed, bicycle and pedestrian safety, seat belts and child passenger safety.
2 13. Participate in highly visible collaborative DUI Enforcement operations. 1

3. METHOD OF PROCEDURE
A. Phase 1 – Program Preparation (1st Quarter of Grant Year) • The department will develop operational plans to implement the “best practice” strategies outlined in the objectives section.
• Conduct all training needed to implement the program, in the first quarter. • Purchase all grant related supplies and materials to implement the program, in the first quarter. • Items with a unit cost of $5,000 more (including tax and shipping) must comply with the Buy America Act.
• In order to develop/maintain the “DUI BOLOs,” research will be conducted to identify repeat DUI offenders with a suspended or revoked license as a result of DUI convictions. The DUI BOLO may include the driver’s name, last known address, DOB, description, current license status, and the number of times suspended or revoked for DUI. DUI BOLOs should be updated and distributed to traffic and patrol officers at least monthly. • Implementation of the STEP grant activities will be accomplished by deploying personnel at high crash locations.

Media Requirements
Issue a news release approved by the OTS PIO announcing the kick-off of the grant by December 31 and after the grant is signed and executed, but no sooner than October 1, the start of the grant year. The kick-off release must be approved by the OTS PIO. If you are unable to meet the December 31 deadline to issue a kick-off press release, communicate the reasons to your OTS grant coordinator and OTS PIO.

B. Phase 2 – Program Operations (Throughout Grant Year) Media Requirements
The following requirements are for all grant-related activities:
• Send all media advisories, alerts, videos, graphics, artwork, posters, radio/PSA/video scripts, storyboards, digital and/or print educational materials for grant-related activities to the OTS PIO at [email protected] for approval and copy your OTS grant coordinator. Optimum lead time would

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be 7 days before the scheduled release but at least 3 business days prior to the scheduled release date for review and approval is appreciated.
• Send all PowerPoint presentations, online presentations and trainings for grant-related activities to the OTS PIO at [email protected] for approval and copy your OTS grant coordinator. Certified training courses are EXEMPT from the approval process.
• The OTS PIO is responsible for the approval of the design and content of materials. The agency understands OTS PIO approval is not authorizing approval of budget expenditure or cost. Any cost approvals must come from the OTS grant coordinator. • Pre-approval is not required when using any OTS-supplied template for media advisories, news releases, social media graphics, videos or posts, or any other OTS-supplied educational material.

However, copy the OTS PIO at [email protected] and your OTS grant coordinator when any material is distributed to the media and public, such as a news release, educational material, or link to social media post.
• If an OTS-supplied template, educational material, social media graphic, post or video is substantially changed, the changes shall be sent to the OTS PIO at [email protected] for approval and copy your OTS grant coordinator.
• News releases, social media posts and alerts on platforms such as NextDoor and Nixle reporting immediate and time-sensitive grant activities (e.g. enforcement operations, day of event highlights or announcements, event invites) are EXEMPT from the OTS PIO approval process.

The OTS PIO and your OTS grant coordinator should still be notified when the grant-related activity is happening (e.g. car seat checks, bicycle rodeos, community presentations, DUI checkpoints, etc.).
• Enforcement activities such as warrant and probation sweeps, court stings, etc. that are embargoed or could impact operations by publicizing in advance are EXEMPT from the PIO approval process. However, announcements and results of activities should still be copied to the OTS PIO at [email protected] and your OTS grant coordinator with the embargoed date and time or with “INTERNAL ONLY: DO NOT RELEASE” message in subject line of email. • Any earned or paid media campaigns for TV, radio, digital or social media that are part of a specific grant objective, using OTS grant funds, or designed and developed using contractual services by a subgrantee, requires prior approval.
• Social media posts highlighting state or national traffic safety campaigns (Distracted Driving Month, Motorcycle Safety Awareness Month, etc.), enforcement operations (DUI checkpoints, etc.), or any other grant-related activity such as Bicycle rodeos, presentations, or events, are highly encouraged but do not require prior approval.
• Submit a draft or rough-cut of all digital, printed, recorded or video material (brochures, posters, scripts, artwork, trailer graphics, digital graphics, social posts connected to an earned or paid media campaign grant objective) to the OTS PIO at [email protected] and copy your OTS grant coordinator for approval prior to the production or duplication. • Use the following standard language in all press, media, and printed materials, space permitting:

Funding for this program was provided by a grant from the California Office of Traffic Safety, through the National Highway Traffic Safety Administration. • Space permitting, include the OTS logo on all grant-funded print materials, graphics and paid or earned social media campaign grant objective; consult the OTS PIO and copy your OTS grant coordinator for specifics, format-appropriate logos, or if space does not permit the use of the OTS logo.
• Email the OTS PIO at [email protected] and copy your OTS grant coordinator at least 21 days in advance, or when first confirmed, a short description of any significant grant-related traffic safety event or program, particularly events that are highly publicized beforehand with anticipated media coverage so the OTS has sufficient notice to arrange for attendance and/or participation in the event. If unable to attend, email the OTS PIO at [email protected] and your OTS grant coordinator brief highlights and/or results, including any media coverage (broadcast, digital, print) of the event within 7 days following significant grant-related event or program. The OTS PIO and your OTS grant coordinator should still be notified in advance when the grant-related activity is happening (e.g. car seat checks, bicycle rodeos, community presentations, DUI checkpoints, etc.).

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• Any news releases, work plans, scripts, storyboards, artwork, graphics, videos or any educational or informational materials that received OTS PIO approval in a prior grant year must be resubmitted for approval in the current grant year.
• For additional guidance, refer to the OTS Grants Materials Approval Process Guidelines and FAQs .
• Email the OTS PIO at [email protected] or your OTS grant coordinator for consultation when changes from any of the above requirements might be warranted.

C. Phase 3 – Data Collection & Reporting (Throughout Grant Year)

1. Prepare and submit grant claim invoices (due January 30, April 30, July 30, and October 30)

2. Prepare and submit Quarterly Performance Reports (QPR) (due January 30, April 30, July 30, and October 30)
• Collect and report quarterly, appropriate data that supports the progress of goals and objectives. • Provide a brief list of activity conducted, procurement of grant-funded items, and significant media activities. Include status of grant-funded personnel, status of contracts, challenges, or special accomplishments.
• Provide a brief summary of quarterly accomplishments and explanations for objectives not completed or plans for upcoming activities.
• Collect, analyze and report statistical data relating to the grant goals and objectives.

4. METHOD OF EVALUATION
Using the data compiled during the grant, the Grant Director will complete the “Final Evaluation” section in the fourth/final Quarterly Performance Report (QPR). The Final Evaluation should provide a brief summary of the grant’s accomplishments, challenges and significant activities. This narrative should also include whether goals and objectives were met, exceeded, or an explanation of why objectives were not completed.

5. ADMINISTRATIVE SUPPORT
This program has full administrative support, and every effort will be made to continue the grant activities after grant conclusion.

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State of California – Office of Traffic Safety

GRANT AGREEMENT
Schedule B

GRANT NUMBER
PT27183

FUND NUMBER CATALOG

NUMBER (CFDA)

FUND DESCRIPTION TOTAL AMOUNT
164ID-27 20.608 Minimum Penalties for Repeat
Offenders for Driving While
Intoxicated
$45,000.00
402PT-27 20.600 State and Community Highway
Safety
$18,000.00
405e DDA-27 20.616 Distracted Driving Awareness $16,500.00 1906-27 20.611 Racial Profiling Prohibition Grants $8,500.00

COST CATEGORY FUND
NUMBER

UNIT COST OR
RATE

UNITS TOTAL COST TO
GRANT
A. PERSONNEL COSTS
Straight Time
$0.00
Overtime
DUI/DL Checkpoints 164ID-27 $13,500.00 2 $27,000.00
DUI Saturation Patrols 164ID-27 $4,750.00 3 $14,250.00
Collaborative DUI Enforcement 164ID-27 $2,250.00 1 $2,250.00 Traffic Enforcement 402PT-27 $2,250.00 3 $6,750.00
Motorcycle Safety Enforcement 402PT-27 $2,250.00 1 $2,250.00 Pedestrian and Bicycle Enforcement 402PT-27 $2,250.00 1 $2,250.00 Distracted Driving Enforcement 405e DDA27$3,300.00 5 $16,500.00 Category Sub-Total $71,250.00
B. TRAVEL EXPENSES
In State Travel 402PT-27 $4,550.00 1 $4,550.00
$0.00
Category Sub-Total $4,550.00
C. CONTRACTUAL SERVICES
$0.00
Category Sub-Total $0.00
D. EQUIPMENT
$0.00
Category Sub-Total $0.00
E. OTHER DIRECT COSTS
DUI Checkpoint Supplies 164ID-27 $1,500.00 1 $1,500.00
Lidar Device 402PT-27 $2,200.00 1 $2,200.00
Traffic Stop Data License 1906-27 $100.00 85 $8,500.00
Category Sub-Total $12,200.00
F. INDIRECT COSTS
$0.00
Category Sub-Total $0.00
GRANT TOTAL $88,000.00

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State of California – Office of Traffic Safety

GRANT AGREEMENT
Schedule B-1

GRANT NUMBER
PT27183

BUDGET NARRATIVE

PERSONNEL COSTS
DUI/DL Checkpoints - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

DUI Saturation Patrols - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

Collaborative DUI Enforcement - Overtime for grant funded Collaborative DUI Enforcement operations conducted by appropriate department personnel
Traffic Enforcement - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

Motorcycle Safety Enforcement - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

Pedestrian and Bicycle Enforcement - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

Distracted Driving Enforcement - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

TRAVEL EXPENSES
In State Travel - Costs are included for appropriate staff to attend conferences and training events supporting the grant goals and objectives and/or traffic safety. Local mileage for grant activities and meetings is included. All conferences, seminars or training not specifically identified in the Budget Narrative must be approved by OTS. All travel claimed must be at the agency approved rate. Per Diem may not be claimed for meals provided at conferences when registration fees are paid with OTS grant funds.

CONTRACTUAL SERVICES
-

EQUIPMENT
-

OTHER DIRECT COSTS
DUI Checkpoint Supplies - On-scene supplies needed to conduct sobriety checkpoints. Costs may include 28" traffic cones, MUTCD compliant traffic signs, MUTCD compliant high visibility vests (maximum of 10), traffic counters (maximum of 2), generator, gas for generators, lighting, reflective banners, electronic flares, PAS Device Supplies, PAS Calibration Supplies, heater, propane for heaters, fan, anti-fatigue mats, and canopies. Additional items may be purchased if approved by OTS. The cost of food and beverages will not be reimbursed.

Lidar Device - Light detection and ranging device used to measure the speed of motor vehicles. This device will be used for speed enforcement. Costs may include lidar devices, batteries, tax, and shipping.

Traffic Stop Data License - Access to the RIPA application to collect stop data that will guide officers through the required questions needed to collect observational data. The software has built in conjunction with the California DOJ and several city law enforcements agencies. Costs may include software, licenses, training, accessories, and associated shipping and taxes.

INDIRECT COSTS
-

STATEMENTS/DISCLAIMERS
There will be no program income generated from this grant.

Salaries may include wages, salaries, special compensations, or authorized absences such as annual leave and sick leave provided the cost for the individual employee is (a) reasonable for the services rendered, and (b) follows an appointment made in accordance with state or local laws and rules and meets federal requirements.

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Any non-grant funded vacancies created by reassignment to a grant-funded position must be filled at the expense of the grantee agency.

Nothing in this agreement shall be interpreted as a requirement, formal or informal, that a particular law enforcement officer issue a specified or predetermined number of citations in pursuance of the goals and objectives here under.

The OTS grant funded activities must be separate from other grant funded program activities and maintained under separate accounting tracking codes (example: the same DUI checkpoint may not be funded by both the CHP Cannabis Tax Fund and the OTS).

Benefits for personnel costs can only be applied to straight time or overtime hours charged to the grant.

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Appendix A to Part 1300—Certifications and Assurances for Highway Safety Grants (23 U.S.C. Chapter 4 or Section 1906, Public Law 109-59, as amended by Section 25024, Public Law 117- 58)
The officials named on the grant agreement, certify by way of signature on the grant agreement signature page, that the Grantee Agency complies with all applicable Federal statutes, regulations, and directives and State rules, guidelines, policies, and laws in effect with respect to the periods for which it receives grant funding.

Applicable provisions include, but are not limited to, the following:

GENERAL REQUIREMENTS
The State will comply with applicable statutes and regulations, including but not limited to:
• 23 U.S.C. Chapter 4—Highway Safety Act of 1966, as amended; • Sec. 1906, Public Law 109-59, as amended by Sec. 25024, Public Law 117-58; • 23 CFR part 1300—Uniform Procedures for State Highway Safety Grant Programs; • 2 CFR part 200—Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards;
• 2 CFR part 1201—Department of Transportation, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.

NONDISCRIMINATION
(applies to subrecipients as well as States)
The State highway safety agency [and its subrecipients] will comply with all Federal statutes and implementing regulations relating to nondiscrimination (“Federal Nondiscrimination Authorities”). These include but are not limited to:
• Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin);
• 49 CFR part 21 (entitled Non-discrimination in Federally-Assisted Programs of the Department of Transportation—Effectuation of Title VI of the Civil Rights Act of 1964); • 28 CFR 50.3 (U.S. Department of Justice Guidelines for Enforcement of Title VI of the Civil Rights Act of 1964);
• The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects);
• Federal-Aid Highway Act of 1973, (23 U.S.C. 324 et seq.), and Title IX of the Education Amendments of 1972, as amended (20 U.S.C. 1681-1683 and 1685-1686) (prohibit discrimination on the basis of sex);
• Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 794 et seq.), as amended, (prohibits discrimination on the basis of disability) and 49 CFR part 27; • The Age Discrimination Act of 1975, as amended, (42 U.S.C. 6101 et seq.), (prohibits discrimination on the basis of age);
• The Civil Rights Restoration Act of 1987, (Pub. L. 100-209), (broadens scope, coverage, and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the
Federal aid recipients, subrecipients and contractors, whether such programs or activities are Federallyfunded or not); • Titles II and III of the Americans with Disabilities Act (42 U.S.C. 12131-12189) (prohibits discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing) and 49 CFR parts 37 and 38
State of California – Office of Traffic Safety

GRANT AGREEMENT
Exhibit A

GRANT NUMBER
PT27183

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The preceding statutory and regulatory cites hereinafter are referred to as the “Acts” and “Regulations,” respectively.

GENERAL ASSURANCES
In accordance with the Acts, the Regulations, and other pertinent directives, circulars, policy, memoranda, and/or guidance, the Recipient hereby gives assurance that it will promptly take any measures necessary to ensure that:
“No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity, for which the Recipient receives Federal financial assistance from DOT, including NHTSA.”
The Civil Rights Restoration Act of 1987 clarified the original intent of Congress, with respect to Title VI of the Civil Rights Act of 1964 and other non-discrimination requirements (the Age Discrimination Act of 1975, and Section 504 of the Rehabilitation Act of 1973), by restoring the broad, institutional-wide scope and coverage of these nondiscrimination statutes and requirements to include all programs and activities of the Recipient, so long as any portion of the program is Federally assisted.

SPECIFIC ASSURANCES
More specifically, and without limiting the above general Assurance, the Recipient agrees with and gives the following Assurances with respect to its Federally assisted Highway Safety Grant Program:

1. The Recipient agrees that each “activity,” “facility,” or “program,” as defined in 49 CFR part 21 will be (with regard to an “activity”) facilitated, or will be (with regard to a “facility”) operated, or will be (with regard to a “program”) conducted in compliance with all requirements imposed by, or pursuant to the Acts and the Regulations.

2. The Recipient will insert the following notification in all solicitations for bids, Requests For Proposals for work, or material subject to the Acts and the Regulations made in connection with all Highway Safety Grant Programs and, in adapted form, in all proposals for negotiated agreements regardless of funding source:
“The [name of Recipient], in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C 2000d to 2000d-4) and the Regulations, hereby notifies all bidders that it will affirmatively ensure that in any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, or national origin in consideration for an award.”

3. The Recipient will insert the clauses of appendix A and E of this Assurance (also referred to as DOT order 1050.2A) [1]in every contract or agreement subject to the Acts and the Regulations.

4. The Recipient will insert the clauses of appendix B of DOT Order 1050.2A, as a covenant running with the land, in any deed from the United States effecting or recording a transfer of real property, structures, use, or improvements thereon or interest therein to a Recipient.

5. That where the Recipient receives Federal financial assistance to construct a facility, or part of a facility, the Assurance will extend to the entire facility and facilities operated in connection therewith.

6. That where the Recipient receives Federal financial assistance in the form of, or for the acquisition of, real property or an interest in real property, the Assurance will extend to rights to space on, over, or under such property.

7. That the Recipient will include the clauses set forth in appendix C and appendix D of this DOT Order 1050.2A, as a covenant running with the land, in any future deeds, leases, licenses, permits, or similar instruments entered into by the Recipient with other parties:
a. for the subsequent transfer of real property acquired or improved under the applicable activity, project, or program; and
b. for the construction or use of, or access to, space on, over, or under real property acquired or improved under the applicable activity, project, or program.

8. That this Assurance obligates the Recipient for the period during which Federal financial assistance is extended to the program, except where the Federal financial assistance is to provide, or is in the

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form of, personal property, or real property, or interest therein, or structures or improvements thereon, in which case the Assurance obligates the Recipient, or any transferee for the longer of the following periods:
a. the period during which the property is used for a purpose for which the Federal financial assistance is extended, or for another purpose involving the provision of similar services or benefits; or
b. the period during which the Recipient retains ownership or possession of the property.

9. The Recipient will provide for such methods of administration for the program as are found by the Secretary of Transportation or the official to whom he/she delegates specific authority to give reasonable guarantee that it, other recipients, sub-recipients, sub- grantees, contractors, subcontractors, consultants, transferees, successors in interest, and other participants of Federal financial assistance under such program will comply with all requirements imposed or pursuant to the Acts, the Regulations, and this Assurance.

10. The Recipient agrees that the United States has a right to seek judicial enforcement with regard to any matter arising under the Acts, the Regulations, and this Assurance.

By signing this ASSURANCE, the State highway safety agency also agrees to comply (and require any subrecipients, sub-grantees, contractors, successors, transferees, and/or assignees to comply) with all applicable provisions governing NHTSA's access to records, accounts, documents, information, facilities, and staff. You also recognize that you must comply with any program or compliance reviews, and/or complaint investigations conducted by NHTSA. You must keep records, reports, and submit the material for review upon request to NHTSA, or its designee in a timely, complete, and accurate way. Additionally, you must comply with all other reporting, data collection, and evaluation requirements, as prescribed by law or detailed in program guidance.

The State highway safety agency gives this ASSURANCE in consideration of and for obtaining any Federal grants, loans, contracts, agreements, property, and/or discounts, or other Federal-aid and Federal financial assistance extended after the date hereof to the recipients by the U.S. Department of Transportation under the Highway Safety Grant Program. This ASSURANCE is binding on the State highway safety agency, other recipients, sub-recipients, sub-grantees, contractors, subcontractors and their subcontractors', transferees, successors in interest, and any other participants in the Highway Safety Grant Program. The person(s) signing below is/are authorized to sign this ASSURANCE on behalf of the Recipient.

THE DRUG-FREE WORKPLACE ACT OF 1988 (41 U.S.C. 8103)
The Subgrantee will provide a drug-free workplace by:
a. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the grantee's workplace, and specifying the actions that will be taken against employees for violation of such prohibition; b. Establishing a drug-free awareness program to inform employees about:

1. The dangers of drug abuse in the workplace;

2. The grantee's policy of maintaining a drug-free workplace;

3. Any available drug counseling, rehabilitation, and employee assistance programs;

4. The penalties that may be imposed upon employees for drug violations occurring in the workplace;

5. Making it a requirement that each employee engaged in the performance of the grant be given a copy of the statement required by paragraph (a); c. Notifying the employee in the statement required by paragraph (a) that, as a condition of employment under the grant, the employee will—

1. Abide by the terms of the statement;

2. Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than five days after such conviction; d. Notifying the agency within ten days after receiving notice under subparagraph (c)(2) from an employee or otherwise receiving actual notice of such conviction; e. Taking one of the following actions, within 30 days of receiving notice under subparagraph (c)(2), with respect to any employee who is so convicted—

1. Taking appropriate personnel action against such an employee, up to and including termination;

2. Requiring such employee to participate satisfactorily in a drug abuse assistance or

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rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency;
f. Making a good faith effort to continue to maintain a drug-free workplace through implementation of all of the paragraphs above.

POLITICAL ACTIVITY (HATCH ACT)
(applies to subrecipients as well as States)
The State will comply with provisions of the Hatch Act (5 U.S.C. 1501-1508), which limits the political activities of employees whose principal employment activities are funded in whole or in part with Federal funds.

CERTIFICATION REGARDING FEDERAL LOBBYING
(applies to subrecipients as well as States)

CERTIFICATION FOR CONTRACTS, GRANTS, LOANS, AND COOPERATIVE AGREEMENTS The undersigned certifies, to the best of his or her knowledge and belief, that:

1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement;

2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions;

3. The undersigned shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, subgrants, and contracts under grant, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

RESTRICTION ON STATE LOBBYING
(applies to subrecipients as well as States)
None of the funds under this program will be used for any activity specifically designed to urge or influence a State or local legislator to favor or oppose the adoption of any specific legislative proposal pending before any State or local legislative body. Such activities include both direct and indirect (e.g., “grassroots”) lobbying activities, with one exception. This does not preclude a State official whose salary is supported with NHTSA funds from engaging in direct communications with State or local legislative officials, in accordance with customary State practice, even if such communications urge legislative officials to favor or oppose the adoption of a specific pending legislative proposal.

CERTIFICATION REGARDING DEBARMENT AND SUSPENSION
(applies to subrecipients as well as States)

INSTRUCTIONS FOR PRIMARY TIER PARTICIPANT CERTIFICATION (STATES)

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1. By signing and submitting this proposal, the prospective primary tier participant is providing the certification set out below and agrees to comply with the requirements of 2 CFR parts 180 and 1200.

2. The inability of a person to provide the certification required below will not necessarily result in denial of participation in this covered transaction. The prospective primary tier participant shall submit an explanation of why it cannot provide the certification set out below. The certification or explanation will be considered in connection with the department or agency's determination whether to enter into this transaction. However, failure of the prospective primary tier participant to furnish a certification or an explanation shall disqualify such person from participation in this transaction.

3. The certification in this clause is a material representation of fact upon which reliance was placed when the department or agency determined to enter into this transaction. If it is later determined that the prospective primary tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default or may pursue suspension or debarment.

4. The prospective primary tier participant shall provide immediate written notice to the department or agency to which this proposal is submitted if at any time the prospective primary tier participant learns its certification was erroneous when submitted or has become erroneous by reason of changed circumstances.

5. The terms covered transaction, civil judgment, debarment, suspension, ineligible, participant, person, principal, and voluntarily excluded, as used in this clause, are defined in 2 CFR parts 180 and 1200. You may contact the department or agency to which this proposal is being submitted for assistance in obtaining a copy of those regulations.

6. The prospective primary tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into this transaction.

7. The prospective primary tier participant further agrees by submitting this proposal that it will include the clause titled “Instructions for Lower Tier Participant Certification” including the “Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion—Lower Tier Covered Transaction,” provided by the department or agency entering into this covered transaction, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions and will require lower tier participants to comply with 2 CFR parts 180 and 1200.

8. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart

9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any prospective lower tier participants, each participant may, but is not required to, check the System for Award Management Exclusions website
( https://www.sam.gov/).

9. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.

10. Except for transactions authorized under paragraph 6 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency may terminate the transaction for cause or default.

CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS—PRIMARY TIER

COVERED TRANSACTIONS

1. The prospective primary tier participant certifies to the best of its knowledge and belief, that it and

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its principals:
a. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency;
b. Have not within a three-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; c. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (1)(b) of this certification; and d. Have not within a three-year period preceding this application/proposal had one or more public transactions (Federal, State, or local) terminated for cause or default.

2. Where the prospective primary tier participant is unable to certify to any of the Statements in this certification, such prospective participant shall attach an explanation to this proposal.

INSTRUCTIONS FOR LOWER TIER PARTICIPANT CERTIFICATION

1. By signing and submitting this proposal, the prospective lower tier participant is providing the certification set out below and agrees to comply with the requirements of 2 CFR parts 180 and 1200.

2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension or debarment.

3. The prospective lower tier participant shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances.

4. The terms covered transaction, civil judgment, debarment, suspension, ineligible, participant, person, principal, and voluntarily excluded, as used in this clause, are defined in 2 CFR parts 180 and 1200. You may contact the person to whom this proposal is submitted for assistance in obtaining a copy of those regulations.

5. The prospective lower tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this transaction originated.

6. The prospective lower tier participant further agrees by submitting this proposal that it will include the clause titled “Instructions for Lower Tier Participant Certification” including the “Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion—Lower Tier Covered Transaction,” without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions and will require lower tier participants to comply with 2 CFR parts 180 and 1200.

7. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart

9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any prospective lower tier participants, each participant may, but is not required to, check the System for Award Management Exclusions website
( https://www.sam.gov/).

8. Nothing contained in the foregoing shall be construed to require establishment of a system of

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records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.

9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension or debarment.

CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSION—LOWER TIER

COVERED TRANSACTIONS

1. The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency.

2. Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal.

BUY AMERICA
(applies to subrecipients as well as States)
The State and each subrecipient will comply with the Buy America requirement (23 U.S.C. 313) when purchasing items using Federal funds. Buy America requires a State, or subrecipient, to purchase with Federal funds only steel, iron and manufactured products produced in the United States, unless the Secretary of Transportation determines that such domestically produced items would be inconsistent with the public interest, that such materials are not reasonably available and of a satisfactory quality, or that inclusion of domestic materials will increase the cost of the overall project contract by more than 25 percent. In order to use Federal funds to purchase foreign produced items, the State must submit a waiver request that provides an adequate basis and justification for approval by the Secretary of Transportation.

CERTIFICATION ON CONFLICT OF INTEREST
(applies to subrecipients as well as States)

GENERAL REQUIREMENTS
No employee, officer, or agent of a State or its subrecipient who is authorized in an official capacity to negotiate, make, accept, or approve, or to take part in negotiating, making, accepting, or approving any subaward, including contracts or subcontracts, in connection with this grant shall have, directly or indirectly, any financial or personal interest in any such subaward. Such a financial or personal interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or personal interest in or a tangible personal benefit from an entity considered for a subaward. Based on this policy:

1. The recipient shall maintain a written code or standards of conduct that provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents. a. The code or standards shall provide that the recipient's officers, employees, or agents may neither solicit nor accept gratuities, favors, or anything of monetary value from present or potential subawardees, including contractors or parties to subcontracts. b. The code or standards shall establish penalties, sanctions, or other disciplinary actions for violations, as permitted by State or local law or regulations.

2. The recipient shall maintain responsibility to enforce the requirements of the written code or standards of conduct.

DISCLOSURE REQUIREMENTS

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No State or its subrecipient, including its officers, employees, or agents, shall perform or continue to perform under a grant or cooperative agreement, whose objectivity may be impaired because of any related past, present, or currently planned interest, financial or otherwise, in organizations regulated by NHTSA or in organizations whose interests may be substantially affected by NHTSA activities. Based on this policy:

1. The recipient shall disclose any conflict of interest identified as soon as reasonably possible, making an immediate and full disclosure in writing to NHTSA. The disclosure shall include a description of the action which the recipient has taken or proposes to take to avoid or mitigate such conflict.

2. NHTSA will review the disclosure and may require additional relevant information from the recipient.

If a conflict of interest is found to exist, NHTSA may (a) terminate the award, or (b) determine that it is otherwise in the best interest of NHTSA to continue the award and include appropriate provisions to mitigate or avoid such conflict.

3. Conflicts of interest that require disclosure include all past, present, or currently planned organizational, financial, contractual, or other interest(s) with an organization regulated by NHTSA or with an organization whose interests may be substantially affected by NHTSA activities, and which are related to this award. The interest(s) that require disclosure include those of any recipient, affiliate, proposed consultant, proposed subcontractor, and key personnel of any of the above. Past interest shall be limited to within one year of the date of award. Key personnel shall include any person owning more than a 20 percent interest in a recipient, and the officers, employees or agents of a recipient who are responsible for making a decision or taking an action under an award where the decision or action can have an economic or other impact on the interests of a regulated or affected organization.

PROHIBITION ON USING GRANT FUNDS TO CHECK FOR HELMET USAGE (applies to subrecipients as well as States)
The State and each subrecipient will not use 23 U.S.C. Chapter 4 grant funds for programs to check helmet usage or to create checkpoints that specifically target motorcyclists.

POLICY ON SEAT BELT USE
In accordance with Executive Order 13043, Increasing Seat Belt Use in the United States, dated April 16, 1997, the Grantee is encouraged to adopt and enforce on-the-job seat belt use policies and programs for its employees when operating company-owned, rented, or personally-owned vehicles. The National Highway Traffic Safety Administration (NHTSA) is responsible for providing leadership and guidance in support of this Presidential initiative. For information and resources on traffic safety programs and policies for employers, please contact the Network of Employers for Traffic Safety (NETS), a public-private partnership dedicated to improving the traffic safety practices of employers and employees. You can download information on seat belt programs, costs of motor vehicle crashes to employers, and other traffic safety initiatives at www.trafficsafety.org. The NHTSA website ( www.nhtsa.gov) also provides information on statistics, campaigns, and program evaluations and references.

POLICY ON BANNING TEXT MESSAGING WHILE DRIVING
In accordance with Executive Order 13513, Federal Leadership On Reducing Text Messaging While Driving, and DOT Order 3902.10, Text Messaging While Driving, States are encouraged to adopt and enforce workplace safety policies to decrease crashes caused by distracted driving, including policies to ban text messaging while driving company-owned or rented vehicles, Government-owned, leased or rented vehicles, or privately-owned vehicles when on official Government business or when performing any work on or behalf of the Government. States are also encouraged to conduct workplace safety initiatives in a manner commensurate with the size of the business, such as establishment of new rules and programs or reevaluation of existing programs to prohibit text messaging while driving, and education, awareness, and other outreach to employees about the safety risks associated with texting while driving.

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City Council
August 19, 2026

STAFF REPORT
To: City Council
From: Jonathan Nicks, City Manager
Prepared by: Jonathan Nicks, City Manager
Subject: Approval of Amendment No. 2 to Agreement No. 22-11-003-IC with Desert Recreation District for park reservation services for first-year compensation of $38,392.64
RECOMMENDATION:

Approve Amendment No. 2 to Agreement No. 22-11-003-IC with Desert Recreation District for park reservation services for an initial three-year term, with two optional one-year extensions, at a firstyear cost of $38,392.64 and annual increases of three percent (3%); and authorize the City Manager to execute the amendment in a form approved by the City Attorney.

SUMMARY:

The City currently contracts with Desert Recreation District (DRD) to administer reservations at City parks. The proposed amendment updates the agreement to add the new Indio Sports Park, incorporate DRD’s revised scope and pricing for park reservation services, and establish an initial three-year term with two optional one-year extensions. The amendment also removes the park ambassador and janitorial services added under the previous amendment, as those services are now provided through separate City contracts. In addition, Exhibit “C” establishes an Athletic Field Allocation Priority that gives preference to recreational organizations with at least seventy percent (70%) Indio resident participation.

BACKGROUND INFORMATION:

On February 15, 2023, the City entered into Agreement No. 22-11-003-IC with Desert Recreation District (DRD) to administer park reservations, recreational programming, fee collection, reporting, and related services at designated City parks.

In October 2023, the agreement was amended to add park ambassador, janitorial, custodial, monitoring, and maintenance support services. In May 2025, the City Council approved transitioning park janitorial services from DRD to a separate service provider. DRD has continued to manage park reservations and recreational programming.

Under the existing compensation structure, DRD retained the park rental fees it collected as compensation for administering the reservation program. DRD advised that the revenue generated under this arrangement was insufficient to cover the cost of providing these services and proposed a separate compensation structure based on the cost of assigning a 0.50 full-time equivalent Administrative Assistant II to the program, plus thirty percent (30%) administrative overhead.

AGENDA ITEM #9.18
Approval of Amendment No. 2 to Agreement No. 22-11-003-IC with Desert Re... Page 721 of 953 Proposed Amendment No. 2 removes the additional ambassador and janitorial-related services, adds Indio Sports Park to the facilities covered by the agreement, and updates DRD’s park reservation services and compensation. The first-year cost is $38,392.64, with a three percent (3%) annual increase over an initial three-year term and two optional one-year extensions. DRD estimates approximately $8,640 in annual rental revenue, which will be remitted to the City in accordance with the agreement.

The amendment also establishes an Athletic Field Allocation Priority that gives preference to organizations with at least seventy percent (70%) Indio resident participation in the following order:

1. Resident Non-Profit Recreational Youth Sports Organizations;

2. Resident Youth Travel/Club Teams;

3. Resident Recreational Adult Sports Organizations; and

4. Non-Resident Organizations and Travel/Club Teams.

FINANCIAL SUMMARY:

Current FY Financial
Impact:
$29,752.64 In current year budget: Yes
Current FY General
Fund Impact:
$29,752.64 Budget adjustment: No
Next FY Financial
Impact:
30,904.42 Strategic Objective: Community Well-being
Source of funds: 101-1013131 Fund-Org-Object
Reference:
101-1013131
Additional Financial Details:

The first-year cost is $38,392.64 and an estimated $8,640 annual rental revenue, which will be remitted back to the City. The estimated overall FY impact for this year is $29,752.64.

ATTACHMENTS:

Attachment 1 - 2023 Park and Recreational Services - Desert Recreation District Agreement Attachment 2 - SECOND AMENDMENT TO AGREEMENT NO. 22-11-003-IC - CITY OF

INDIO - DRD
Attachment 3 - City of Indio Price Proposal - Park Reservation Services APPROVAL(S):

Ruby D. Walla, Director of Finance Approved - 12 Aug 2026 Steven Graham Pacifico, City Attorney Approved - 13 Aug 2026 Jonathan Nicks, City Manager Approved - 13 Aug 2026

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BETWEEN THE CITY OF INDIO
AND

THE DESERT RECREATION DISTRICT

FOR PARK AND RECREATIONAL SERVICES
This Agreement (" Agreement") is made and entered into by and between the City of Indio, a California municipal corporation (" CITY") and Desert Recreation District, a California special district (" DISTRICT"), with respect to the following:

RECITALS
WHEREAS, the CITY owns or leases certain real property that is used for various recreational and community activities; and,
WHEREAS, the DISTRICT also owns or leases certain real property within the CITY that is used for such activities and is authorized and uniquely qualified to provide and administer these activities; and WHEREAS, the DISTRICT' s mission is to provide and administer certain recreational activities and related services that benefit the residents of Indio; and WHEREAS, the CITY has identified and listed those activities and services the CITY wishes the DISTRICT to administer described more thoroughly in " Exhibit A;" and WHEREAS, the DISTRICT desires to provide those activities and services on behalf of the CITY as described more thoroughly in " Exhibit A."
NOW, THEREFORE, in consideration of the mutual promises, obligations and covenants hereinafter contained, and based upon confirmation that the recitals set out above are true and correct the parties agree as follows:

1. 0. Term and Termination.
a) All Recitals set out above are true and correct.
b) The term of this Agreement shall commence upon its execution by both parties and shall end upon termination by either Party with not less than ninety ( 90) days' notice. All days set out are calendar days unless otherwise provided.
c) Either Party may terminate this Agreement for any reason, with or without cause, upon issuance to the other of a prior written Notice of Termination. Such a Notice of Termination shall become effective upon completion of outstanding reservations and Agreement between City of Indio and Desert Recreation District No. 22- 11- 003- IC 1of10

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BETWEEN THE CITY OF INDIO
AND

THE DESERT RECREATION DISTRICT

FOR PARK AND RECREATIONAL SERVICES
activities as of the date of the Notice of Termination. DISTRICT shall inform CITY of that date upon issuance or receipt of any such Notice of Termination.

2. 0 Obligations of the DISTRICT.
a) DISTRICT shall administer park facility reservations with the work, tasks and functions outlined in the Scope of Services, attached hereto, and incorporated herein by this reference as Exhibit A.
b) The Manager shall coordinate with the City Manager, or his/ her respective designates, regarding the Services. DISTRICT shall comply with all applicable local, state, or federal laws, regulations, or guidelines in its performance under this Agreement. c) DISTRICT shall perform the Services to the same standards as those which apply to services it performs throughout the DISTRICT' s service area. d) The DISTRICT shall determine, apply, collect, retain, and administer all fees and charges for activities and related services in the manner and based upon the rates set out in the DISTRICT' s current Park User Fee Schedule.
i) may adjust such fees and charges as allowed by law.
ii) shall provide quarterly reports to CITY of the fees collected. e) DISTRICT shall promote and market all programs, classes and events provided under Exhibit " A."
f) The DISTRICT shall provide the CITY with a quarterly report and update on the progress of their programs, events, and overall condition of the Parks. g) Upon provision of access by the CITY, DISTRICT shall control sports field lighting for parks, i. e., to turn on and off lighting associated with reservations. DISTRICT cannot control such lighting without access provided by the CITY. h) The DISTRICT shall notify the CITY of any damage to or misuse of parks. Examples of reportable incidents include but not limited to graffiti, vandalism, and other types of property damage. The DISTRICT shall notify the CITY immediately of any potential safety Agreement between City of Indio and Desert Recreation District No. 22- 11- 003- IC 2of10

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BETWEEN THE CITY OF INDIO
AND

THE DESERT RECREATION DISTRICT

FOR PARK AND RECREATIONAL SERVICES
hazards in the parks. DISTRICT will not provide management of parks, security or enforcement of City Park ordinances or rules or regulations without separate agreements and charges to the City and such services are not included within those set in Exhibit A.

3. 0 Obligations of the CITY.
a) In consideration of the provision of this Agreement, CITY provides full and complete access to the Parks set out on Exhibit " A."
b) The CITY will continue to maintain the overall maintenance of each CITY Park listed in Exhibit " A." Such maintenance shall be at a level which supports' s provision of Services.

Such maintenance shall include, but is not limited to, regular maintenance, repair, and replacement of turf, play structures, water structures, electrical issues, and lighting fixtures to standards [ adopted by the CITY] as well as mowing, planting, graffiti removal, and parking lot repair and maintenance. Maintenance specifically includes dragging the field for sports games.
c) CITY shall provide security at the Parks. Such security includes timely responses by Code Enforcement and Indio Police Department for violation of CITY ordinances regarding parks as well as the applicable park rules and regulation. d) CITY shall be responsible for the cost of all utilities at the Parks and for providing access for sports field lighting.
e) CITY shall work with to confirm a system, acceptable to both Parties, for controlling park maintenance, irrigation, open and closing of restrooms to support the Services. f) CITY shall provide access to the equipment inventory associated with use of the fields and other Park facilities, including but not limited to nets, bases, and all other related equipment. CITY shall maintain and repair such equipment in a timely manner upon notice from.
g) CITY shall include publicity for programs at the Parks on its website and in CITY publications.

4. 0 Mutual Indemnity and Release. The CITY and the DISTRICT each hereby agree to indemnify, defend, and hold harmless the other party and its officers, employees, agents, Agreement between City of Indio and Desert Recreation District No. 22- 11- 003- IC 3of10

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BETWEEN THE CITY OF INDIO
AND

THE DESERT RECREATION DISTRICT

FOR PARK AND RECREATIONAL SERVICES
and authorized volunteers ( collectively, " Indemnitees") from and against any and all claims, causes of action, obligations, losses, liabilities, judgments, or damages, including reasonable attorneys' fees and costs of litigation ( collectively " Claims") arising out of the indemnifying party' s activities in the performance of this Agreement, or to the indemnifying party' s acts and/ or omissions in providing or administering the same.

5. 0 Insurance. Each party to this Agreement shall maintain, for the Term of the Agreement, general liability insurance in the minimum amount of $ 1 million per occurrence / $ 2 million general aggregate, and workers' compensation insurance (statutory limits) / employer' s liability insurance in the minimum amount of $1 million per accident or disease. a) CITY' S Insurance Obligation. Without limiting the indemnification provisions provided herein, CITY, at its sole expense, shall obtain and keep in force during the term of this AGREEMENT and any extensions thereof, a policy or policies of general liability insurance covering all injuries to persons and damage to property occurring in, upon or about the Premises resulting from any actions or omissions of the CITY or any use of the Premises by the CITY or its invitees in accordance with the terms of this AGREEMENT. At the CITY' s option, CITY shall be allowed to self -insure the insurance coverage as required above. b) DISTRICT' s Insurance Obligation. Without limiting the indemnification provisions provided herein, DISTRICT, at its sole expense, shall obtain and keep in force during the term of this AGREEMENT and any extensions thereof, a policy or policies of general liability insurance covering all injuries to persons and damage to property occurring in, upon or about the Premises resulting from any actions or omissions of DISTRICT or any use of the Premises by DISTRICT or its invitees in accordance with the terms of this AGREEMENT. T h e coverage shall provide for a combined single limit of bodily injury and property damage in the amount of not less than One Million Dollars 1, 000, 000). Prior to the Commencement Date of this AGREEMENT, and upon renewal of such policies, DISTRICT shall submit to CITY certificates of insurance and any applicable endorsements evidencing that the foregoing policy or policies are in effect.

Agreement between City of Indio and Desert Recreation District No. 22- 11- 003- IC 4of10

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BETWEEN THE CITY OF INDIO
AND

THE DESERT RECREATION DISTRICT

FOR PARK AND RECREATIONAL SERVICES
c) The CITY and The DISTRICT mutually represent and acknowledge that both are members of the California Joint Powers Insurance Authority (" JPIA"), a municipal self-insurance pool. The California JPIA provides liability coverage, including general liability and automobile liability, to the CITY and DRD. d) If at any point during the term of this Agreement, CITY or DISTRICT no longer receive liability coverage through the California JPIA, the parties mutually agree to renegotiate the insurance requirements contained herein.

6. 0 Dispute Resolution: If the event that there is a dispute as to the interpretation of this Agreement, the City Manager and General Manager ( or their designees) shall meet to try to resolve the issue. Any such resolution shall be confirmed in writing and attached to this Agreement to confirm such interpretation.

7. 0 Ownership of Documents. Each Party shall retain ownership of its own documents.

Notwithstanding, upon reasonable request, shall make available to CITY all public documents prepared by the DISTRICT pursuant to this Agreement.

8. 0 Notices and Designated Representatives. Any and all notices, demands, invoices and written communications between the Parties hereto shall be addressed as follows and the positions designated are primarily responsible for the performance by the Parties under this Agreement:

CITY City Manager
100 Civic Center Mall
Indio, CA 92201
760) 391- 4000
760) 391- 4008 Fax
DRD: General Manager
Desert Recreation District
45- 305 Oasis St.

Indio, CA 92201
760) 347- 3484
Any such notices, demands, invoices and written communications shall be given personally, by fax or by mail and shall be deemed to have been received by the addressee forty- eight ( 48) Agreement between City of Indio and Desert Recreation District No. 22- 11- 003- IC 5of10

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BETWEEN THE CITY OF INDIO
AND

THE DESERT RECREATION DISTRICT

FOR PARK AND RECREATIONAL SERVICES
hours after deposit thereof in the United States mail, first class, postage prepaid and properly addressed as set forth above.

9. 0 Independent Contractor. The Parties hereto agree that the DISTRICT and its officers, employees, agents, and volunteers, providing Services per this Agreement are independent contractors and shall not be construed for any purpose to be employees of CITY. The Parties further agree that the CITY and its officers, employees, agents, and volunteers providing any Services under this Agreement are and remain independent contractor as to DISTRICT.

10. 0 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Venue shall be in Riverside County.

11. 0 Entire Agreement. This Agreement supersedes any and all other agreements, either oral or in writing, between the Parties with respect to the subject matter herein. Each Party to this Agreement acknowledges that no representation, statement, agreement or promise by either Party that is not contained in this Agreement shall be valid and binding. Any modification of this Agreement shall be effective only if it is in writing signed by all Parties. No waiver of any term or condition of this Agreement shall be a continuing waiver thereof.

12. 0 Attorneys' Fees. The prevailing Party in any litigation to interpret or enforce this Agreement shall be entitled to recover attorneys' fees and costs in any amount to be determined by the court.

13. 0 Equal Employment OpportunitV. In connection with its performance under this Agreement, The DISTRICT shall not discriminate against any person seeking Services or any employee or applicant for employment because of race, religion, color, sex, age, marital status, ancestry, national origin or other protected class, or association with such protected class. The DISTRICT shall ensure that Services are obtained, and employment applicants are employed, and that employees are treated during their employment, without regard to their race, religion, color, sex, age, marital status, ancestry, national origin or other protected class or association with such protected class. Such actions shall include, but not be limited to, the following:
employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.

14. 0 Assignment. No assignment of this Agreement or of any part or obligation of performance hereunder shall be made, either in whole or in part, by the DISTRICT without the prior written Agreement between City of Indio and Desert Recreation District No. 22- 11- 003- IC 6of10

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BETWEEN THE CITY OF INDIO
AND

THE DESERT RECREATION DISTRICT

FOR PARK AND RECREATIONAL SERVICES
consent of CITY. Any attempt by the DISTRICT to so assign this Agreement or any rights, duties or obligations arising hereunder shall be void and of no effect.

15. 0 Permits and Licenses. DISTRICT shall obtain and maintain during the Agreement term any necessary licenses, permits and certificates required by law for the provision of services under this Agreement, including a business license if required.

16. 0 Drafting of this Agreement. No provision of this Agreement shall be interpreted for or against any Party because that Party' s legal counsel drafted such provision. This Agreement shall be construed as if jointly prepared by both Parties.

Signature Page below)
Agreement between City of Indio and Desert Recreation District No. 22- 11- 003- IC 7of10

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BETWEEN THE CITY OF INDIO
AND

THE DESERT RECREATION DISTRICT

FOR PARK AND RECREATIONAL SERVICES
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year set forth below:

DESERT RECREATION DISTRICT
Aa --- 1 Aa

KC IN KALMAN
General Manager

CITY OF INDIO
L 1

R MON'TGOMEFNJ
City Manager
ATTEST:
2 1 S Z3

SABDI SANCHEZ
City Clerk Administrator

APPROVED AS TO FORM

STEVEN GRAHAM
City Attorney
Agreement between City of Indio and Desert Recreation District No. 22- 11- 003- IC 8of10

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BETWEEN THE CITY OF INDIO
AND

THE DESERT RECREATION DISTRICT

FOR PARK AND RECREATIONAL SERVICES
Exhibit A
Scope of Services
DISTRICT shall be responsible for the following:

1. Reservation scheduling at the CITY Parks below. Such reservation scheduling shall be performed using DISTRICT' s process, forms, and fee schedule. All fees for reservation schedule and park use shall be paid to DISTRICT. All fees shall be retained by the DISTRICT.

2. Program Scheduling and Operation. DISTRICT shall determine the programs to be offered at such parks. Such program operations shall include recreational, cultural, and educational programs of a nature and type similar to that provided in other portions of the DISTRICT and to the same standards. The DISTRICT shall coordinate with those groups requesting parks use, including but not limited community - based organizations, youth sports leagues, non -profits, and private parties. The DISTRICT' s AP 601 Policy establishes fees and charges that are intended to reflect priority access for DISTRICT residents, which is utilized throughout the DISTRICT to set fees and is amended annually.

3. Additional Services Requested by CITY: In the event CITY requests specific or additional Services or programs not otherwise provided, CITY and DISTRICT shall agree upon the compensation for such programs before they are scheduled or advertised.

4. CITY Parks included within this Agreement with the areas and services to be programmed:

Dr. Carreon Park: Barbecue Areas, Playground Equipment, Basketball Courts, and Shaded Area w/ Tables
Dominguez Park: Barbecue Areas, Basketball Courts, Playground Equipment, Shaded Area w/ Tables and Walking Paths
Miles Ave. Park: Barbecue Areas, Basketball Courts, Playground Equipment, Restrooms and Shaded Area w/ Tables
Agreement between City of Indio and Desert Recreation District No. 22- 11- 003- IC 9of10

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BETWEEN THE CITY OF INDIO
AND

THE DESERT RECREATION DISTRICT

FOR PARK AND RECREATIONAL SERVICES
North Jackson Park: Barbecue Areas, Basketball Courts, Playground Equipment, Shaded Area w/ Tables, Softball Fields, Tennis Courts, and Walking Paths Patton Park: Barbecue Areas, Basketball Courts, Playground Equipment, Restrooms, Shaded Area w/ Tables and Tennis Courts
Shields Park: Benches, Walking Paths, and Water Fountain Yucca Park: Barbecue Areas, Playground Equipment and Shaded Area w/ Tables Burr St. Park: Basketball Courts and Playground Equipment Cahuilla Park: Barbecue Areas, Basketball Courts, Playground Equipment, Shaded Area w/ Tables and Softball Fields
Davis Field: Baseball Fields and Softball Fields
South Jackson Park: Barbecue Areas, Playground Equipment, Restrooms, Shaded Area w/ Tables and Tennis Courts
South Jackson Soccer Park: Soccer Fields
Agreement between City of Indio and Desert Recreation District No. 22- 11- 003- IC 10 of 10

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SECOND AMENDMENT TO AGREEMENT NO. 22-11-003-IC

BETWEEN THE CITY OF INDIO AND

THE DESERT RECREATION DISTRICT

FOR PARK AND RECREATIONAL SERVICES
THIS SECOND AMENDMENT TO AMENDED AND RESTATED AGREEMENT NO. 22-11- 003-IC ("Second Amendment") is made and entered into as of ____________, 2026, by and between the City of Indio, a California municipal corporation ("CITY"), and the Desert Recreation District, a California special district ("DISTRICT"). CITY and DISTRICT may be referred to herein individually as "Party" and collectively as "Parties."

RECITALS

1. WHEREAS, on or about February 15, 2023, the CITY and the DISTRICT entered into Agreement No. 22-11-003-IC for park and recreational services ("Original Agreement");

2. WHEREAS, pursuant to the Original Agreement, the DISTRICT agreed to administer certain park facility reservations, recreational programming, fee administration, reporting, and related services for the CITY parks as more particularly described in the Original Agreement and Exhibit "A" thereto;

3. WHEREAS, on or about October 25, 2023, the CITY and the DISTRICT entered into Amended and Restated Agreement No. 1 ("Amended Agreement") to increase the maximum annual expenditure authority and add certain additional services consistent with the DISTRICT's September 12, 2023 proposal, including park attendant, custodial, monitoring, safety, community engagement, and maintenance support services;

4. WHEREAS, on May 7, 2025, the City Council approved the transition of park janitorial services from the DISTRICT to Dynamic Building Maintenance; and

5. WHEREAS, the CITY and the DISTRICT desire to amend the Amended Agreement to remove certain services added by the Amended Agreement while preserving the DISTRICT's original reservation, programming, fee administration, reporting, and related obligations under the Original Agreement, except as expressly amended herein;

6. WHEREAS, the DISTRICT submitted a price proposal for park reservation services, including reservation management, customer service, application processing, fee collection, financial administration, conflict resolution, policy administration, rental support, data collection and reporting, and related administrative support ("Price Proposal");

7. WHEREAS, the CITY desires to add Indio Sports Park to the list of the CITY parks and facilities for which the DISTRICT administers reservations, programming, and related services under the Original Agreement, as amended; and

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8. WHEREAS, the CITY and the DISTRICT desire to establish a three-year term for the park reservation services described herein, with two optional one-year extensions, and a three percent (3%) annual increase to the compensation set forth in this Second Amendment;

9. WHEREAS, the CITY desires to establish a clear athletic field allocation priority that prioritizes Indio resident enrollment and provides transparent requirements for athletic field reservations, fees, and permitted use of athletic facilities; and

10. WHEREAS, the CITY and the DISTRICT now desire to amend the Amended Agreement to revise the scope of services, update the park list, incorporate compensation and revenue remittance terms, remove certain additional services added by the Amended Agreement, and incorporate athletic field allocation and reservation requirements.

OPERATIVE PROVISIONS
NOW, THEREFORE, for and in consideration of the mutual promises, obligations and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:

SECTION 1. INCORPORATION OF RECITALS
The Recitals set forth above are true and correct and are incorporated herein by this reference.

SECTION 2. REMOVAL OF ADDITIONAL SERVICES ADDED BY AMENDED

AGREEMENT
The Parties acknowledge and agree that the additional services added by the Amended Agreement, including park supervision, park attendant, custodial, monitoring, safety, community engagement, and maintenance support services, are hereby removed from DISTRICT's scope of services, except to the limited extent any such service is expressly included in this Second Amendment or Exhibit A (Scope of Services) attached hereto.

Nothing in this Second Amendment shall remove or limit DISTRICT's original obligations under the Original Agreement, including reservation scheduling, program scheduling and operation, coordination with user groups, administration of applicable fees and charges, quarterly reporting, control of sports field lighting associated with reservations upon provision of access by CITY, and notification to CITY of damage, misuse, vandalism, graffiti, or potential safety hazards observed by DISTRICT.

For clarity, reservation support, application processing, fee collection, reporting, and related administrative services under this Second Amendment shall not include janitorial services, custodial services, restroom cleaning, restroom stocking, general park supervision, law enforcement, security services, field maintenance, turf maintenance, facility repairs, or other CITY maintenance obligations unless expressly authorized in writing by CITY.

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SECTION 3. TERM AND EXTENSIONS
The services and compensation established by this Second Amendment shall commence on August 1, 2026 and continue through June 30, 2029 ("Initial Second Amendment Term"), unless earlier terminated pursuant to the Original Agreement, as amended.

CITY shall have the option to extend the services established by this Second Amendment for up to two (2) additional one-year extension terms, through June 30, 2030 and June 30, 2031, respectively. Each optional extension shall be exercised by written notice from CITY to DISTRICT prior to the expiration of the then-current term, unless otherwise agreed to in writing by the Parties.

Compensation for each annual period shall be subject to a three percent (3%) annual increase as set forth in Exhibit "B" (Compensation and Rental Revenue).

Except as expressly amended by this Second Amendment, the termination provisions of the Original Agreement, as amended, shall remain in full force and effect.

SECTION 4. OPERATIVE EXHIBITS
Exhibit "A" (Scope of Services) to the Amended Agreement is replaced in its entirety with the Exhibit "A" attached to this Second Amendment and incorporated herein by this reference.

Exhibit "B" (Compensation and Rental Revenue) is added to the Agreement as provided in this Second Amendment to establish compensation, rental revenue, invoicing, and payment terms for the services described in this Second Amendment.

Exhibit "C" (Athletic Field Allocation Priority) is added to the Agreement as provided in this Second Amendment to establish the Athletic Field Allocation Priority applicable to athletic field reservations at CITY parks and facilities.

SECTION 5. ADDITION OF INDIO SPORTS PARK
Indio Sports Park is hereby added to the list of CITY parks and facilities included within the Agreement. DISTRICT shall administer reservation scheduling, program scheduling and operation, coordination with user groups, and related services for Indio Sports Park in the same manner as the other CITY parks listed in Revised Exhibit "A" (Scope of Services) subject to the terms of the Original Agreement, as amended by the Amended Agreement or Second Amendment.

SECTION 6. ATHLETIC FIELD ALLOCATION PRIORITY
DISTRICT shall administer athletic field reservations for CITY parks and facilities in accordance with the Athletic Field Allocation Priority attached hereto as Exhibit "C" and incorporated by reference. The Parties acknowledge that the Athletic Field Allocation Priority is intended to provide clear priority for Indio resident enrollment and consistent administration of athletic field reservations.

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SECTION 7. YOUTH SPORTS SAFETY COMPLIANCE
DISTRICT shall comply with all applicable federal, state, and local laws relating to the services provided and the use of CITY parks and athletic facilities. DISTRICT shall promptly notify youth sports organizations using CITY athletic facilities of applicable youth sports safety requirements, including California Health and Safety Code section 124238.5, and shall require each organization to self-certify its compliance with requirements then in effect relating to CPR and AED training, cardiac emergency response planning, and access to an operational AED during official practices and matches.

DISTRICT shall incorporate these requirements into its applicable reservation or facility use agreements. Each youth sports organization shall remain responsible for complying with the requirements applicable to its programs, including providing access to an operational AED and maintaining and testing any AED supplied by the organization. DISTRICT shall reserve the right to request written proof of compliance from the organization, but DISTRICT’s applicable reservation or facility use agreements should otherwise serve as the organization’s self-certification that such requirements have been met. In the event that DISTRICT requested written proof of compliance from the organization, DISTRICT shall provide such records to CITY upon request.

When DISTRICT sponsors or conducts a youth athletic program, DISTRICT shall be responsible for compliance with the requirements applicable to that program. “Sponsoring” or “conducting” a youth athletic program shall be interpreted to mean a youth athletic program that is originally designed, created, and operated by DISTRICT. “Sponsoring” or “conducting” shall not be interpreted to mean DISTRICT’s typical compliance duties previously mentioned in this Section 7.0.

DISTRICT shall require its reservation or facility use agreements with youth sports organizations to include indemnification and hold harmless provisions benefiting CITY and DISTRICT, in a form approved by the City Attorney, for claims arising from the organization’s activities or failure to comply with applicable youth sports safety requirements
SECTION 8. COMPENSATION AND RENTAL REVENUE
Section 3.0(h) of the Amended Agreement, which relates to compensation for the additional services added by the Amended Agreement and the September 12, 2023 proposal, is hereby deleted in its entirety and replaced with the compensation and revenue terms set forth in this Section and Exhibit "B" (Compensation and Rental Revenue).

CITY shall compensate DISTRICT for the services described in this Second Amendment in accordance with Exhibit "B" (Compensation and Rental Revenue).

The annual compensation for the first annual period, August 1, 2026 through June 30, 2027, shall not exceed Thirty-Eight Thousand Three Hundred Ninety-Two Dollars and Sixty-Four Cents ($38,392.64). Compensation for subsequent annual periods shall increase by three percent (3%) annually, unless otherwise agreed to in writing by the Parties.

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DISTRICT shall collect rental fees through its reservation system and provide regular financial reporting documenting all revenue received. Unless otherwise agreed to in writing by CITY and DISTRICT, rental revenue collected by DISTRICT for CITY park, athletic field, light, pavilion, and facility reservations shall be remitted to CITY in accordance with Exhibit "B" (Compensation and Rental Revenue). DISTRICT's compensation under this Second Amendment is separate from rental revenue.

DISTRICT shall invoice CITY on a monthly basis, unless otherwise agreed to in writing by the Parties. CITY shall use its best efforts to pay correct and undisputed invoices within thirty (30) calendar days of receipt of a properly documented invoice that complies with the requirements of this Second Amendment. Each invoice shall identify the dates of service, the applicable billing period, and such supporting documentation as City may reasonably require. Notice shall be deemed effective as stated in the Original Agreement, as amended. In the event any charges or expenses are disputed by CITY, the original invoice shall be returned by CITY to DISTRICT for correction and resubmission.

SECTION 9. CONFLICTS
In the event of any conflict between this Second Amendment and the Original Agreement or Amended Agreement, this Second Amendment shall control. In the event of any conflict between the exhibits attached to this Second Amendment, the documents shall be interpreted in the following order of priority: Exhibit "C" (Athletic Field Allocation Priority), Exhibit "B" (Compensation and Rental Revenue), and Exhibit "A" (Scope of Services).

SECTION 10. CONTINUING EFFECT
Except as expressly amended by this Second Amendment, all other terms and conditions of the Original Agreement, as amended by the Amended Agreement, shall remain unchanged and in full force and effect, including but not limited to provisions related to termination, indemnification, insurance, dispute resolution, ownership of documents, notices, and designated representatives.

SECTION 11. AUTHORITY
Each person executing this Second Amendment on behalf of a Party represents and warrants that he or she has the authority to execute this Second Amendment on behalf of that Party and to bind that Party to the terms and conditions set forth herein.
[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the Parties hereto have executed this Second Amendment as of the date set forth above.

CITY OF INDIO
______________________________
Jonathan Nicks
City Manager
ATTEST:
______________________________
Sabdi Sanchez, MMC
Director of City Clerk Services
APPROVED AS TO FORM:
______________________________
Steven Graham Pacifico
City Attorney

DESERT RECREATION DISTRICT
______________________________
Gabriel D. Martin, Ph. D.

General Manager

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EXHIBIT "A"

SCOPE OF SERVICES
DISTRICT shall be responsible for the following:

SECTION 1. RESERVATION MANAGEMENT AND ADMINISTRATION
DISTRICT shall administer reservation scheduling and related administrative services for the CITY parks and facilities listed in this Exhibit "A." Such reservation scheduling shall be performed using DISTRICT's reservation system, process, forms, and fee schedule, subject to the terms of the Agreement, as amended, and any additional requirements approved by CITY in writing.

Reservation management and administrative services include the following:
• Reservation Management: receive, process, and manage park rental requests, including availability verification, scheduling, and calendar coordination; • Customer Service: serve as the primary point of contact for park rental inquiries, provide rental information, assist customers through the reservation process, and respond to questions before, during, and after each rental; • Application Processing: review rental applications, collect required documentation, execute rental agreements, and verify compliance with applicable CITY and DISTRICT policies and procedures;
• Fee Collection: collect rental fees, deposits, insurance documentation, and any applicable permits or additional charges in accordance with the approved fee schedule;
• Financial Administration: track rental revenues, process refunds when applicable, reconcile transactions, and prepare financial and operational reports; • Conflict Resolution: address scheduling conflicts, customer concerns, policy violations, and operational issues in a timely and professional manner; • Policy Administration: administer applicable CITY and DISTRICT park rental policies, rental conditions, and facility use regulations to support equitable access and consistent service delivery;
• Rental Support: coordinate reservation-related facility access and post-event followup to support compliance with rental requirements; and • Data Collection and Reporting: maintain accurate records of park usage, rental trends, customer demographics, and revenue to support operational planning and policy decisions.

Rental support under this Exhibit "A" is limited to reservation-related coordination and reporting and does not include janitorial, custodial, restroom cleaning, maintenance, repair, law enforcement, or security services unless expressly authorized in writing by CITY.

SECTION 2. STAFFING
DISTRICT shall provide the professional staffing necessary to administrate, coordinate, and support the CITY park reservation program. Staffing shall include a 0.50 FTE Administrative Assistant II, or equivalent DISTRICT staffing, to oversee reservations and related administrative services.

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SECTION 3. PROGRAM SCHEDULING AND OPERATION
DISTRICT shall determine the programs to be offered at such parks. Such program operations shall include recreational, cultural, and educational programs of a nature and type similar to that provided in other portions of DISTRICT and to the same standards.

DISTRICT shall coordinate with groups requesting park use, including but not limited to community-based organizations, youth sports leagues, nonprofit organizations, and private parties.

SECTION 4. ADDITIONAL SERVICES REQUESTED BY CITY
In the event CITY requests specific or additional services or programs not otherwise provided, CITY and DISTRICT shall agree upon the scope and compensation for such programs or services before they are scheduled, advertised, or performed.

SECTION 5. CITY PARKS AND FACILITIES INCLUDED WITHIN THIS

AGREEMENT
The CITY parks and facilities included within this Agreement are:

1. Burr Park 6. Indio Sports Park 11. South Jackson Park

2. Cahuilla Park 7. Miles Avenue Park 12. South Jackson Soccer Park

3. Davis Field 8. North Jackson Park 13. Yucca Park

4. Dominguez Park 9. Patton Park

5. Dr. Carreon Park 10. Shields Park
SECTION 6. REPORTS
DISTRICT shall provide quarterly reports to CITY consistent with the Original Agreement (Section 2.0 Obligations of the DISTRICT, subsections (d) and (f).). Such reports shall include updates on reservations, programs, fees collected, rental revenue remitted to CITY, overall condition of the Parks, and any damage, misuse, vandalism, graffiti, or potential safety hazards observed by DISTRICT.

For athletic field reservations, DISTRICT shall also include information reasonably necessary for CITY to review field allocation, including user group categories, resident organization status, and reported no-shows or unauthorized use.

SECTION 7. EXCLUDED SERVICES
Unless expressly authorized in writing by CITY, DISTRICT shall not be responsible for park supervision, park attendant services, janitorial services, custodial services, restroom cleaning, restroom stocking, general park monitoring, surveillance, visitor assistance, emergency response, maintenance support, community engagement services added by the Amended Agreement, law enforcement, security services, field maintenance, turf maintenance, facility repairs, or other CITY maintenance obligations.

Nothing in this section shall remove DISTRICT's original obligation to notify CITY of damage, misuse, vandalism, graffiti, or potential safety hazards observed by DISTRICT during the performance of its services.

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EXHIBIT "B"

COMPENSATION AND RENTAL REVENUE
SECTION 1. COMPENSATION
CITY shall compensate DISTRICT for the services described in this Second Amendment as follows. Compensation for each annual period after the first annual period shall increase by three percent (3%) annually unless otherwise agreed to in writing by the Parties.

Annual Period Term Amount
Initial Year 1 August 1, 2026 - June 30,
2027
$38,392.64
Initial Year 2 July 1, 2027 - June 30,
2028
$39,544.42
Initial Year 3 July 1, 2028 - June 30,
2029
$40,730.75
Optional Extension Year 1 July 1, 2029 - June 30,
2030
$41,952.67
Optional Extension Year 2 July 1, 2030 - June 30,
2031
$43,211.25
SECTION 2. ESTIMATED RENTAL REVENUE
Based on current reservation activity, rental revenue is estimated as follows. These amounts are estimates only and do not limit actual rental revenue collected or remitted.

Revenue Source Estimated Annual Revenue
Pavilion Reservations $5,400.00
Light Rentals $1,440.00
Ball Field Rentals $1,800.00
Total Estimated Annual Revenue $8,640.00
SECTION 3. RENTAL REVENUE COLLECTION AND REMITTANCE
DISTRICT shall collect rental fees through its reservation system and provide regular financial reporting documenting rental revenue received.

Unless otherwise agreed to in writing by CITY and DISTRICT, all rental revenue, including pavilion rentals, ball field rentals, light rentals, and other applicable rental fees, shall be remitted to CITY. Facility deposits shall be administered in accordance with applicable reservation policies. Administrative fees may be retained by DISTRICT only if identified in the approved fee schedule or otherwise authorized by CITY in writing.

DISTRICT's compensation under this Second Amendment is separate from rental revenue and is based on the cost of providing reservation management and administrative services.

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SECTION 4. INVOICING AND PAYMENT
DISTRICT shall invoice CITY monthly unless otherwise agreed to in writing by the Parties. CITY shall use its best efforts to pay undisputed invoices within thirty (30) calendar days of receipt of a correct and undisputed invoice that complies with the requirements of this Second Amendment. Each invoice shall include sufficient detail to identify the services performed, the dates of service, the applicable billing period, and such supporting documentation as City may reasonably require. Notice shall be deemed effective as stated in the Original Agreement, as amended. In the event any charges or expenses are disputed by CITY, the original invoice shall be returned by CITY to DISTRICT for correction and resubmission.

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EXHIBIT "C"

ATHLETIC FIELD ALLOCATION PRIORITY
DISTRICT shall administer athletic field reservations for CITY parks and facilities in a manner that prioritizes Indio resident enrollment and provides fair and consistent access to athletic fields.

Unless otherwise approved in writing by CITY, athletic field time shall be allocated based on Indio resident enrollment and in the following order of priority:

1. Resident Non-Profit Recreational Youth Sports Organizations;

2. Resident Youth Travel/Club Teams;

3. Resident Recreational Adult Sports Organizations; and

4. Non-Resident Organizations and Travel/Club Teams.

For purposes of this Exhibit "C," a "Resident" organization shall mean an organization in which at least seventy percent (70%) of the participants are Indio residents.

Recreational Youth Sports Organizations shall have priority use of athletic facilities over Recreational Adult Sports Organizations and travel/club teams.

DISTRICT shall require user groups requesting recurring athletic field reservations to provide information reasonably necessary to verify residency, organization type, requested field use, and compliance with applicable reservation requirements. Such information may include, but is not limited to, rosters or other documentation sufficient to verify Indio resident enrollment, master schedules, insurance documentation, and proof of nonprofit status, if applicable.

DISTRICT shall not knowingly permit the subleasing, assignment, transfer, or unauthorized use of allocated athletic field time. DISTRICT shall track and report to CITY any known no-shows, abandoned field time, unauthorized use, or violations of reservation requirements.

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To: Jose Ramirez, Principal Management Analyst – City of Indio From: Courtney Galvan, Community Services Supervisor
Subject: Price Proposal for Park Reservation Services – City of Indio CC: Gabriel Martin, General Manager; Manny Marrujo Community Services Specialist Our vision is through a community collaborative approach, Desert Recreation District will provide quality, barrier-free and safe recreational activities that contribute to the overall wellness of the citizens of the Coachella Valley; encourage healthy lifestyles and positive out-of-school activities; and facilitate, coordinate and plan for recreation facilities and trails.

This letter of Intent affirms Desert Recreations District ’s interest in continuing our formal working partnership with the City of Indio to facilitate park rentals at all City of Indio parks and incorporating the new Indio Sports Park. Based upon meeting with City of Indio Staff, Desert Recreation District has provided you with estimates of expense details.

Desert Recreation District's park rental fees are established in accordance with the District's Fees & Charges Policy, which is designed to provide affordable access to community recreation opportunities while ensuring the responsible stewardship of public resources. Rental rates are based on the District's cost recovery philosophy and are intended to balance community benefit with the operational costs of maintaining safe, clean, and accessible park facilities.

This proposal is classified under Desert Recreation District's Full Cost Recovery Plus 30% pricing category. Programs and services within this category are designed to respond to a demonstrated community demand for a specific recreation service while ensuring the District remains financially sustainable. Fees are established to be competitive within the local market and to recover 100% of all direct and indirect costs, plus an additional 30% margin to support the continued delivery of high-quality recreation services.

Proposed Sites:

Burr Street Park – 42811 Burr Street Indio CA, 92201
Cahuilla Park – 83787 Hopi Avenue Indio, CA 92201

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Dominguez Park - 81967 Crown Way Indio, CA 92201
Dr Carreon Park – 82200 Dr. Carreon Boulevard Indio, CA 92201 Indio Sports Complex – 82600 Market Street Indio, CA 92201 Miles Avenue Park – 82540 Miles Avenue Indio, CA 92201
North Jackson Park – 43200 Towne Street Indio, CA 92201 Patton Park – 83700 Avenue 43 Indio, CA 92203
Shields Park – 80500 Avenue 46 Indio, CA 92201
South Jackson Park – 46480 Jackson Street Indio, CA 92201 South Jackson Soccer Park – 83318 Date Street Indio, CA 92201 Yucca Park – 43605 Yucca Street Indio, CA 92201
Services Include:
• Reservation Management: Receive, process, and manage all park rental requests through the District's reservation system, including availability verification, scheduling, and calendar coordination.
• Customer Service: Serve as the primary point of contact for park rental inquiries, provide rental information, assist customers throughout the reservation process, and respond to questions before, during, and after each rental.
• Application Processing: Review rental applications, collect required documentation, execute rental agreements, and verify compliance with District policies and procedures. Ensure compliance with all City of Indio Park rules and regulations.
• Fee Collection: Collect rental fees, deposits, insurance documentation, and any applicable permits or additional charges in accordance with the approved fee schedule. • Financial Administration: Track rental revenues, process refunds when applicable, reconcile transactions, and prepare financial and operational reports. • Conflict Resolution: Address scheduling conflicts, customer concerns, policy violations, and operational issues in a timely and professional manner. • Policy Administration: Enforce the City's and District's park rental policies, rental conditions, and facilities use regulations to ensure equitable access and consistent service delivery. • Rental Support: Coordinate facility access, and post-event follow-up to ensure parks are left in acceptable condition and that rental policies are followed. • Data Collection and Reporting: Maintain accurate records of park usage, rental trends, customer demographics, and revenue to support operational planning and policy decisions.

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Staffing Services:

Desert Recreation District will provide the professional staffing necessary to administer, coordinate, and support the City of Indio's park rental program. Staff will oversee all aspects of the rental process, ensuring efficient operations, excellent customer service, and compliance with District and City policies. • .50 FTE (Full time Equlivent) Administrative Assistant II to oversee reservations.

Operating Dates:
• August 2026 – June 2027
• With option to extend
Compensation for Services:

In consideration for the administration and management of the City of Indio's park rental program, Desert Recreation District (DRD) shall be compensated for providing comprehensive reservation, administrative, operational, and customer service functions associated with park rentals.

Compensation is intended to recover the full cost of administering the program, including personnel, customer service, reservation management, financial administration, insurance verification, reporting, and other direct and indirect administrative expenses. Compensation may also include an additional cost recovery margin, as approved by the District's Fees and Charges Policy, to support ongoing program administration, technology, training, and long-term operational sustainability.

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August 2026 – June 2027
Expense Category: Annual Cost
Personnel

0.50 FTE Administrative Assistant II $29,532.80
Subtotal – Personnel $29,532.80
Administrative Overhead (30%) $8,859.84
Total Cost of Services $38,392.64
Estimated Annual Revenue
Revenue Source Estimate Revenue
Pavilion Reservations $5,400.00
Light Rentals $1,440.00
Ball Field Rentals $1,800.00
Total Estimated Revenue $8,640.00
Net Cost to be Invoiced to the City of Indio
Amount
Total Cost of Services $38,392.64

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Under the proposed agreement, Desert Recreation District will provide all administrative services necessary to manage the City of Indio's park reservation program, including customer service, reservation processing, rental agreements, payment collection, scheduling, financial reporting, and coordination with City departments. The annual cost to provide these services is $38,392.64, which includes personnel and administrative overhead.

Based on current reservation activity, park rentals are expected to generate approximately $8,640.00 in annual rental revenue based upon budgetary projections. Any revenue collected will be sent to the City of Indio. Desert Recreation District (DRD) will collect rental fees through its reservation system and provide regular financial reporting documenting all revenue received. In accordance with the agreement, all rental revenue, including pavilion rentals, ball field rentals, light rentals, and any other applicable rental fees, will be remitted to the City of Indio minus administrative fees and facility deposits.

DRD's compensation is separate from the rental revenue and is based solely on the cost of providing reservation management and administrative services. The City of Indio will compensate DRD for these services as outlined in the agreement. This structure provides the City of Indio with full transparency and accountability over rental revenues while allowing DRD to professionally administer the program and deliver consistent, high-quality customer service.

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City Council
August 19, 2026

STAFF REPORT
To: City Council
From: Jonathan Nicks, City Manager
Prepared by: Ruby D. Walla, Director of Finance
Subject: Report of investments for the quarter ending June 30, 2026 RECOMMENDATION:

Staff recommends that the City Council receive and file the investment account statement for the quarter ending June 30, 2026.

SUMMARY:

The attached quarterly-account statement (Attachment 1) reflects investment activity for the period of April 1, 2026, through June 30, 2026. The statement was reviewed by the City’s Investment Committee on July 29, 2026, whose members include the City Treasurer, Finance Director, and Council Members Ortiz and Guitron, with no objections noted. All investments and transactions are in compliance with Government Code and City policy. Interest/gains accrued for the quarter ending June 30, 2026, for all pooled funds, totaled $2,028,577. Total investments owned and/or managed by the City, totaled $277,545,304. The City invests public funds in conformance with federal, state, and other legal requirements. These requirements, along with general objectives, delegation of authority, procedures, internal controls, and reporting requirements are detailed in the City's Investment Policy, which is periodically updated to be in conformity with state code and recommendations from the City's investment advisor Chandler Asset Management.

BACKGROUND INFORMATION:

The investment objectives of the City of Indio are first, to provide safety of principal to ensure the preservation of capital in the overall portfolio; second, to provide sufficient liquidity to meet all operating requirements; and third, to earn a commensurate rate of return consistent with the constraints imposed by the safety and liquidity objectives. The performance objective for the portfolio is to earn an average market yield over a market cycle that equals or exceeds the Bank of America Merrill Lynch market Index of 1-5 Year Treasury securities. In order to achieve this objective, the portfolio is invested in high quality money market instruments, US Treasury and Agency securities, and US Corporate notes with a maximum maturity of five years. For the quarter ending June 30, 2026, the average three month market yield of the City’s investments was 4.33%, and the average market yield of the Bank of America Merrill Lynch Index of 1-5 Year Treasury securities was 4.16%. Quarterly investment-reporting requirements as required in the City’s investment policy (Section XII, Paragraph A) are met in the Investment Report as follows:

Quarterly
Reporting
Requirement
Description Report Location
(Page #)
1 An asset listing showing par value, cost and
accurate and complete market value of each
security, type of investment, issuer, maturity
44-52
AGENDA ITEM #10.1
Report of investments for the quarter ending June 30, 2026 (Ruby D. Wall... Page 749 of 953 date, and interest rate
2a Average maturity of the portfolio and modified
duration of the portfolio
20,27,30,32,
34,36,38,41
2b Maturity distribution of the portfolio 24
2c Average portfolio credit quality 20,27,30,32,
34,36,38,41
2d
Time-weighted total rate of return for the
portfolio for the prior one month, three months,
twelve months, year to date, and since inception
compared to the Benchmark Index returns for
the same period
26 3
A statement of compliance with investment
policy 17-19
4 A statement that the City has adequate funds to
meet its cash flow requirements for the next six
months
Staff Report
In accordance with Government Code and the City’s investment policy, staff confirms that the City has an adequate cash flow to meet its expenditure requirements for the next six months, pending any future actions by the City Council or any unforeseen catastrophe.

ATTACHMENTS:
2026.06.30_Quarterly Report_Indio
TreasurersReport2026 - Q4 - FINAL
APPROVAL(S):

Ruby D. Walla, Director of Finance Approved - 08 Aug 2026 Steven Graham Pacifico, City Attorney Approved - 13 Aug 2026 Jonathan Nicks, City Manager Approved - 13 Aug 2026

Report of investments for the quarter ending June 30, 2026 (Ruby D. Wall... Page 750 of 953

INVESTMENT REPORT
City of Indio | As of June 30, 2026
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:

For questions about your account, please call (800) 317-4747, or contact [email protected]
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement.

TABLE OF CONTENTS

ECONOMIC UPDATE

ACCOUNT PROFILE

CONSOLIDATED INFORMATION

PORTFOLIO HOLDINGS

TRANSACTIONS
1

ECONOMIC UPDATE
2

▪▪▪
Energy prices and inflation remained the primary drivers of the macro backdrop as the U.S.-Israel-Iran conflict entered its third month, disrupting global oil supply. Headline CPI accelerated at the fastest pace in more than three years, reflecting volatility in the energy component. Crude oil, however, retraced roughly 20% from its May–early June peak as diplomatic progress between the United States and Iran pointed to a potential framework for de-escalation. The labor market remained resilient, with continued payroll growth and subdued jobless claims. Risk assets held firm, as equities hovered near record highs and credit spreads remained historically tight amid broadly better-than-expected corporate earnings. Taken together, the current market environment has further constrained the case for near-term monetary policy easing, leading the Chandler team to push out its expected timing for rate cuts beyond the six-month investment horizon.

The Federal Reserve’s June FOMC meeting ended with policymakers unanimously holding the target range at 3.50%–3.75%, a notable shift from the 8–4 split at April’s meeting, which marked Jerome Powell’s final session as Chair. Under new Chair Kevin Warsh, sworn in on May 22, the Committee released an unusually concise statement that referenced Middle East tensions and energy supply disruptions while removing prior forward guidance that had suggested a bias toward rate cuts. Updated projections leaned more hawkish, with 9 of 18 officials expecting at least one rate hike this year and 6 anticipating multiple increases. The shift signals that restoring price stability has reemerged as the central focus of monetary policy deliberations.

The Treasury yield curve flattened modestly in June as short-term yields responded to a more hawkish shift in Federal Reserve guidance.

The 2-year yield rose to 4.15% from 3.98% the prior month, while the 10-year yield edged down slightly to 4.44% from 4.45%. As a result, the 2s/10s spread narrowed to 29 basis points, down from roughly 47 basis points a month earlier and significantly below the 69 basis point spread at the start of the year. Meanwhile, the 3-month/10-year spread remained positive at 64 basis points. Front-end rates absorbed the bulk of the Fed’s updated rate outlook, while longer maturities were partly anchored by a late-month decline in oil prices.

ECONOMIC UPDATE
3

-400
-2000
200
400
600
800
1,000 MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
Nonfarm payrolls increased by just 57,000 in June, well below the 113,000 consensus and marking a sharp slowdown from May’s pace. The unemployment rate edged down to 4.2%, though the decline was driven by a drop in labor force participation to 61.5%, its lowest level since March 2021. Revisions further weakened the report’s signal. April payrolls were revised down by 31,000 to 148,000, while May was lowered by 43,000 to 129,000, resulting in a combined two-month downward revision of 74,000.

Source: US Department of Labor Source: US Department of Labor

EMPLOYMENT
4

0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
Historical Average In Thousands (000's)
Job openings were essentially unchanged at 7.6 million in May, remaining elevated by historical standards even as hiring momentum moderates. Gains in wholesale trade and accommodation and food services were offset by declines in health care and social assistance, as well as finance and insurance. April openings were revised down by 33,000 to 7.6 million, while hires were revised up by 99,000, highlighting ongoing churn but a broadly stable labor market backdrop.

Source: US Department of Labor

JOB OPENINGS & LABOR TURNOVER SURVEY
5

Source: Bloomberg Indices Source: Bloomberg Indices

ENERGY MARKETS
Crude oil prices declined sharply in June as supply disruptions tied to the Middle East conflict began to ease. Tanker traffic through the Strait of Hormuz normalized, and signs of progress in U.S.–Iran negotiations helped unwind the geopolitical risk premium that had driven prices higher earlier in the year. West Texas Intermediate settled near $69.37 per barrel on June 30, while Brent crude closed around $72.96, both well below their recent peaks. Brent’s 21% monthly decline marked its steepest drop since March 2020, while WTI fell more than 20%, its largest monthly loss since late 2021. Beyond crude, broader energy markets also softened. Refined product cracks narrowed as gasoline and diesel demand showed signs of seasonal moderation, while U.S. natural gas prices remained range-bound amid ample storage and steady production. Taken together, the retracement in oil and broader energy prices reflects a rapid compression in geopolitical risk premia and improved near-term supply visibility, even as underlying structural risks in the region remain unresolved.

2.00 2.50

3.00 3.50

4.00 4.50

5.00 5.50

6.00 6.50
US Fuel Prices
Average Retail Price US Diesel
Average Retail Price US Gas
($) Per Gallon
40 60
80 100
120
140
160
Oil Prices
West Texas Intermediate (WTI Spot
Cushing)
Dated Brent (Global Spot)
Price Per Barrel (WTI Spot) 6

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY %
Change
PCE Core Deflator YOY %
Change
Fed Target
YOY (%) Change

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY %
Change
YOY (%) Change
Inflation decelerated sharply in June, with the Consumer Price Index falling 0.4% on the month—its largest decline since the onset of the pandemic in 2020—and bringing the annual rate down to 3.5% from 4.2% in May. Core CPI (excluding food and energy) was flat on the month and rose 2.6% year over year, both coming in softer than expected after energy-driven pressures pushed inflation to a three-year high earlier in the quarter. The CPI report suggests at least a near-term reprieve in inflation. However, the latest available Personal Consumption Expenditures (PCE) price index tells a firmer story: headline PCE rose 0.4% in May and 4.1% year over year, up from 3.8% in April and marking the highest annual rate of the current cycle. Core PCE increased 0.3% on the month and 3.4% over the year. Energy prices remained the primary driver of recent headline acceleration, reflecting supply disruptions tied to the Iranian conflict, although price volatility remains elevated.

Source: US Department of Labor Source: US Department of Commerce

INFLATION
7

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%
Retail Sales YOY % Change
YOY (%) Change
Retail sales presented a firmer picture of consumer spending in June, rising 0.2% on the month and 6.7% year over year, while May’s gain was revised up to 1.0%. The control group, which feeds directly into GDP, increased a solid 0.5%, suggesting demand remains more resilient than sentiment alone would indicate. Consumer confidence improved modestly, with the Conference Board’s index edging up 0.6 points to 91.2 in June. However, the headline gain obscures continued weakness in labor market perceptions, as the share of respondents reporting jobs as “hard to get” climbed to a five-and-a-half-year high. Overall, spending has remained notably more resilient than sentiment in recent months. 0
20 40
60 80
100
120
140
160
Index Level
Consumer Confidence
Recession
Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09)

CONSUMER
8

-25.0%
-20.0%
-15.0%
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%
Leading Economic Indicators (LEI)
Recession
YOY (%) Change
-1.00
-0.75
-0.50
-0.25

0.00 0.25

0.50 0.75

1.00 Chicago Fed National Activity Index (CFNAI)
Recession
3 Month Average
The Conference Board’s Leading Economic Index (LEI) edged up 0.1% in May to 99.3, following a revised 0.2% increase in April. Despite the monthly gains, the LEI’s six- and twelve-month growth rates remained negative at -0.6% and -1.5%, respectively. The advance was driven primarily by financial components, including equity prices and the interest rate spread, while consumer expectations continued to weigh on the index. The Chicago Fed National Activity Index fell to -0.10 in May from an upwardly revised 0.19 in April. Production-related and employment-related indicators each subtracted from the index, while the sales, orders, and inventories category made a small positive contribution.

Source: The Conference Board Source: Federal Reserve Bank of Chicago

LEADING INDICATORS OF ECONOMIC ACTIVITY
9

0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
In Thousands of Units
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
Housing starts rebounded in June, rising to a seasonally adjusted annual rate of 1.427 million—a 19% increase from an upwardly revised

1.199 million in May. The gain was driven primarily by multifamily construction, with starts surging more than 76% month over month to 532,000 units, while single-family starts edged down slightly to 895,000. Home price growth showed tentative signs of firming, as the S&P CoreLogic Case-Shiller 20-City Composite rose 1.1% year over year in April, marking its first acceleration since November 2025 and following an upwardly revised 0.9% increase in March. Meanwhile, borrowing costs remained elevated, with Freddie Mac’s average 30-year fixed mortgage rate ticking up to 6.49% in June from 6.44% in May, continuing to weigh on affordability for prospective buyers.

Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
Recession
YOY (%) Change

HOUSING
10

40 45
50 55
60 65
70 Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services

EXPANDING

CONTRACTING
Manufacturing activity cooled slightly in June, with the Institute for Supply Management's Manufacturing Index easing to 53.3%, down 0.7 percentage point from May but still marking a sixth consecutive month of expansion. Services activity also moderated, as the ISM Services Index eased to 54.0% from 54.5%, a twenty-fourth consecutive month in expansion territory. Business activity and new orders both slowed, though the employment component jumped to 51.2% from 47.9%, its strongest reading since late 2021 and the first expansion in services hiring in four months.

Source: Institute for Supply Management

PURCHASING MANAGERS INDEX (PMI)
11

Components of GDP 6/25 9/25 12/25 3/26

1.7% 2.3% 1.3% 0.4%
-2.7% 0.0% 0.4% 1.4%

4.8% 1.6% -0.2% -0.4%
-0.4% 0.2% -1.2% 0.6%

0.3% 0.2% 0.2% 0.2%

3.8% 4.4% 0.5% 2.1%
State and Local (Consumption and Gross
Investment)
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce Real gross domestic product increased at an annualized rate of 2.1% in the first quarter of 2026, according to the Bureau of Economic Analysis’ third estimate, up from 1.6% in the prior estimate and an acceleration from 0.5% in the fourth quarter of 2025. The 0.5 percentage point upward revision was driven primarily by a downward revision to imports—which subtract from GDP—partly offset by a downward revision to consumer spending.

GROSS DOMESTIC PRODUCT (GDP)
12

Source: Federal Reserve Source: Bloomberg 0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In $ millions
The Federal Open Market Committee (FOMC) held the target range for the federal funds rate at 3.50% to 3.75% at its June 16–17 meeting, with a unanimous 12–0 vote. This marked a notable shift from the April meeting—Jerome Powell’s last as chair—which saw four dissents in an 8–4 decision. The return to consensus under Chair Kevin Warsh signals a clear change in tone. Minutes from the June meeting are scheduled for release in early July. The June Summary of Economic Projections reflected a more hawkish outlook. The median projection for the federal funds rate at year-end 2026 rose to 3.8%, up from 3.4% in March, before easing to 3.6% in 2027 and 3.4% in 2028. Officials also revised their inflation forecasts, with headline PCE projected at 3.6% in 2026 (from 2.7%) and core PCE at 3.3%. By contrast, median projections for real GDP growth and the unemployment rate—2.2% and 4.3%, respectively—were little changed.

FEDERAL RESERVE

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
Effective Federal Funds Rate
Recession
Yield (%)
13

Source: Bloomberg Source: Bloomberg

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%
US Treasury Yield Curve
Jun-26
Mar-26
Jun-25
Yield (%)
Treasury yields ended June mixed, with a modest flattening across the curve as markets digested a more hawkish Federal Reserve signal.

The 2-year yield rose to 4.15% from 3.98% at the end of May, while the 10-year yield edged down to 4.44% from 4.45%. The 2s/10s spread narrowed to 29 basis points, down from 47 basis points a month earlier. The 3-month/10-year spread remained positive at roughly 64 basis points at month-end. Relative to the 69 basis point spread at the start of 2026, the curve has flattened materially year to date, reflecting a repricing higher in front-end rates as expectations shift toward the possibility of further Fed tightening rather than easing.

BOND YIELDS
14

ACCOUNT PROFILE
15

OBJECTIVES
Investment Objectives
The City of Indio's investment objectives, in order of priority, are to provide safety to ensure the preservation of capital in the overall portfolio, provide sufficient liquidity for cash needs and a market rate of return consistent with the investment program.

Chandler Asset Management Performance Objective
The performance objective for the accounts is to achievea rate of return overa market cycle that equals or exceeds the return ona market index ofsimilar duration and sector allocation.

Strategy
In order to achieve these objectives, the portfolio invests in high quality fixed income securities consistent with the investment policy and California Government Code. 16

STATEMENT OF COMPLIANCE
City of Indio | Account #10043 | As of June 30, 2026
Rules Name Limit Actual Compliance
Status Notes

AGENCY MORTGAGE SECURITIES
Max% (MV) 100.0 11.3 Compliant
Max% Issuer (MV) 100.0 11.3 Compliant
Max Maturity (Years) 5.0 4.6 Compliant

ASSET-BACKED SECURITIES (ABS)
Max% (MV; Non Agency ABS& MBS) 20.0 10.4 Compliant
Max% Issuer (MV) 5.0 1.0 Compliant
Max Maturity (Years)54 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant

BANKERS' ACCEPTANCES
Max% (MV) 40.0 0.0 Compliant
Max% Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 180 0.0 Compliant
Min Rating (A-1 by1&A- by 1) 0.0 0.0 Compliant

COLLATERALIZED TIME DEPOSITS (NON-

NEGOTIABLE CD/TD)
Max% (MV) 20.0 0.0 Compliant
Max% Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant

COMMERCIAL PAPER
Max% (MV) 40.0 0.0 Compliant
Max% Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 270 0.0 Compliant
Min Rating (A-1 by 1,A- by 2) 0.0 0.0 Compliant

CORPORATE MEDIUM TERM NOTES
Max% (MV) 30.0 27.6 Compliant
Max% Issuer (MV) 5.0 1.3 Compliant
Max Maturity (Years)54 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant
17

STATEMENT OF COMPLIANCE
City of Indio | Account #10043 | As of June 30, 2026
Rules Name Limit Actual Compliance
Status Notes

FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE
CD/TD)
Max% (MV) 20.0 0.0 Compliant
Max Maturity (Years)5 0.0 Compliant

FEDERAL AGENCIES
Max% (MV) 100.0 4.6 Compliant
Max% Issuer (MV) 100.0 2.6 Compliant
Max Maturity (Years)52 Compliant

LOCAL AGENCY INVESTMENT FUND (LAIF)
Max Permitted by LAIF (MV) 150.0 0.0 Compliant

MONEY MARKET MUTUAL FUNDS
Max% (MV) 20.0 0.5 Compliant
Max% Issuer (MV) 20.0 0.5 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant

MORTGAGE-BACKED SECURITIES (NON-AGENCY)
Max% (MV) 20.0 0.0 Compliant
Max% Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (AA by 1) 0.0 0.0 Compliant

MUNICIPAL SECURITIES (CA, LOCAL AGENCY)
Max% (MV) 10.0 1.0 Compliant
Max% Issuer (MV) 5.0 1.0 Compliant
Max Maturity (Years)53 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

MUNICIPAL SECURITIES (CA, OTHER STATES)
Max% (MV) 10.0 0.0 Compliant
Max% Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years)5 0.0 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)
18

STATEMENT OF COMPLIANCE
City of Indio | Account #10043 | As of June 30, 2026
Rules Name Limit Actual Compliance
Status Notes
Max% (MV) 30.0 0.0 Compliant
Max% Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years)5 0.0 Compliant
Min Rating (A-1 by1 orA- by1 if> FDIC Limit) 0.0 0.0 Compliant

REPURCHASE AGREEMENTS
Max Maturity (Years) 1.0 0.0 Compliant

SUPRANATIONAL OBLIGATIONS
Max% (MV) 30.0 1.0 Compliant
Max% Issuer (MV) 10.0 1.0 Compliant
Max Maturity (Years)53 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
U.S. TREASURIES
Max% (MV) 100.0 43.7 Compliant
Max Maturity (Years)54 Compliant
19

PORTFOLIO CHARACTERISTICS
City of Indio | Account #10043 | As of June 30, 2026
Benchmark* 6/30/2026
Portfolio
3/31/2026
Portfolio
Average Maturity (yrs) 2.64 2.93 2.92
Average Modified Duration 2.46 2.48 2.51
Average Purchase Yield 4.23% 4.14%
Average Market Yield 4.16% 4.33% 4.05%
Average Quality** AA+ AA+ AA+
Total Market Value 120,604,450 120,146,191
*Benchmark: ICE BofA1-5 Year Unsubordinated US Treasury & Agency Index **The credit quality isa weighted average calculation of the highest of S&P, Moody’s and Fitch. 20

SECTOR DISTRIBUTION
City of Indio | Account #10043 | As of June 30, 2026
Sector asa Percentage of Market Value
Sector 06/30/2026 03/31/2026
US Treasury 43.70% 41.40%
Corporate 27.51% 27.30%
Agency CMBS 11.39% 11.45%
ABS 10.44% 10.20%
Agency 4.55% 4.60%
Muni Bonds 0.97% 0.99%
Supras 0.95% 2.70%
Money Mkt Fd 0.48% 1.35%
21

ISSUERS
City of Indio | Account #10043 | As of June 30, 2026
Issuer Investment Type% Portfolio
United States US Treasury 43.70%
Federal Home Loan Mortgage Corp Agency CMBS 11.39%
Federal Home Loan Banks Agency 2.64%
New York Life Insurance Company Corporate 1.32%
Toyota Motor Corporation Corporate 1.24%
Alphabet Inc. Corporate 1.23%
Guardian Life Global Funding Corporate 1.16%
Prologis, Inc. Corporate 1.10%
Caterpillar Inc. Corporate 1.10%
Tennessee Valley Authority Agency 1.08%
JPMorgan Chase& Co. Corporate 1.04%
Meta Platforms, Inc. Corporate 1.03%
GM Financial Auto Leasing Trust ABS 1.02%
Bank of America Corporation Corporate 1.00%
Massachusetts Mutual Life Insurance Corporate 0.99%
State of California Muni Bonds 0.97%
Simon Property Group, Inc. Corporate 0.97%
Chase Issuance Trust ABS 0.97%
International Bank for Recon and Dev Supras 0.95%
Honda Auto Receivables Owner Trust ABS 0.94%
Chubb Limited Corporate 0.93%
Northwestern Mutual Global Funding Corporate 0.91%
Mastercard Incorporated Corporate 0.85%
Deere& Company Corporate 0.85%
Nat Rural Util Coop Fin Corp Corporate 0.84%
The Home Depot, Inc. Corporate 0.84%
Bank of America Credit Card Trust ABS 0.84%
PepsiCo, Inc. Corporate 0.84%
Marsh& McLennan Companies, Inc. Corporate 0.84%
Citigroup Inc. ABS 0.83%
22

ISSUERS
City of Indio | Account #10043 | As of June 30, 2026
Issuer Investment Type% Portfolio
Farm Credit System Agency 0.83%
Public Service Enterprise Group Corporate 0.82%
American Express Credit Master Trust ABS 0.79%
PACCAR Inc Corporate 0.75%
Hyundai Auto Lease Sec Trust ABS 0.69%
Toyota Auto Receivables Owner Trust ABS 0.66%
Salesforce, Inc. Corporate 0.65%
Visa Inc. Corporate 0.64%
Morgan Stanley Corporate 0.63%
Met Tower Global Funding Corporate 0.63%
Apple Inc. Corporate 0.58%
Hyundai Auto Receivables Trust ABS 0.58%
Duke Energy Corporation Corporate 0.57%
Hyundai Motor Company ABS 0.57%
Cargill, Incorporated Corporate 0.52%
WF Card Issuance Trust ABS 0.51%
BMW Vehicle Lease Trust ABS 0.50%
Hyundai Motor Company Corporate 0.50%
Cisco Systems, Inc. Corporate 0.49%
Prudential Financial, Inc. Corporate 0.49%
Federated Hermes, Inc. Money Mkt Fd 0.48%
John Deere Owner Trust ABS 0.46%
Mercedes-Benz Auto Lease Trust ABS 0.43%
Florida Power& Light Corporate 0.43%
Pacific Life Global Funding II Corporate 0.41%
GM Financial Securitized Term ABS 0.38%
The Goldman Sachs Group, Inc. Corporate 0.33%
BMW Vehicle Owner Trust ABS 0.26%
Cash Cash 0.00%
TOTAL 100.00%
23

DURATION DISTRIBUTION
City of Indio | Account #10043 | As of June 30, 2026
Portfolio Compared to the Benchmark
0-.25 .25-.5 .5-11-22-33-44-55-7 7+
Portfolio 2.7% 0.2% 3.9% 28.2% 34.0% 22.6% 8.4% 0.0% 0.0% ICE BofA 1-5 Year Unsubordinated US Treasury&
Agency Index 0.0% 0.0% 2.5% 36.2% 28.4% 20.6% 12.3% 0.0% 0.0% 24

QUALITY DISTRIBUTION
City of Indio | Account #10043 | As of June 30, 2026
S&P Rating Moody’s Rating Fitch Rating
Rating 06/30/2026 03/31/2026
AAA 11.01% 13.18%
AA 68.79% 68.05% A 16.84% 14.02%
BBB -- 0.80%
NA 3.35% 3.95%
Rating 06/30/2026 03/31/2026
Aaa 6.81% 10.66%
Aa 70.69% 68.23% A 16.93% 15.74%
NA 5.57% 5.37%
Rating 06/30/2026 03/31/2026
AAA 20.39% 20.16%
AA 55.79% 54.96% A 7.81% 7.08%
NA 16.00% 17.80%
25

INVESTMENT PERFORMANCE
City of Indio | Account #10043 | As of June 30, 2026
Total Rate of Return: Inception | 05/01/2009
TOTAL RATE OF RETURN* 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception City of Indio 0.38% 3.11% 4.77% 4.76% 1.88% 1.97% 1.68% Benchmark 0.24% 2.71% 4.37% 4.30% 1.52% 1.65% 1.45%
*Periods over 1 year are annualized.

Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.

Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index 26

PORTFOLIO CHARACTERISTICS
City of Indio LAIF | Account #10067 | As of June 30, 2026 6/30/2026
Portfolio
3/31/2026
Portfolio
Average Maturity (yrs) 0.00 0.00
Average Modified Duration 0.00 0.00
Average Purchase Yield 3.82% 3.82%
Average Market Yield 3.82% 3.82%
Average Quality** AAA AAA
Total Market Value 125,888,960 91,842,903
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality isa weighted average calculation of the highest of S&P, Moody’s and Fitch. 27

SECTOR DISTRIBUTION
City of Indio LAIF | Account #10067 | As of June 30, 2026 Sector asa Percentage of Market Value
Sector 06/30/2026 03/31/2026
LAIF 99.23% 99.16%
Cash 0.77% 0.84%
28

BOND PROCEEDS
29

PORTFOLIO CHARACTERISTICS
City of Indio- 2022 Lease Revenue Bonds- City Hall and Public Safety Financing | Account #10975 | As of June 30, 2026 6/30/2026
Portfolio
3/31/2026
Portfolio
Average Maturity (yrs) 0.10 0.22
Average Modified Duration 0.10 0.21
Average Purchase Yield 3.49% 3.51%
Average Market Yield 3.62% 3.58%
Average Quality** AA+ AA+
Total Market Value 9,748,452 14,400,756
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality isa weighted average calculation of the highest of S&P, Moody’s and Fitch. 30

SECTOR DISTRIBUTION
City of Indio- 2022 Lease Revenue Bonds- City Hall and Public Safety Financing | Account #10975 | As of June 30, 2026 Sector asa Percentage of Market Value
Sector 06/30/2026 03/31/2026
US Treasury 65.24% 64.94%
Money Mkt Fd 34.58% 34.97%
Cash 0.18% 0.10%
31

PORTFOLIO CHARACTERISTICS
City of Indio- Capitalized Interest Fund | Account #10977 | As of June 30, 2026 6/30/2026
Portfolio
3/31/2026
Portfolio
Average Maturity (yrs) 0.00 0.00
Average Modified Duration 0.00 0.00
Average Purchase Yield 3.25% 3.27%
Average Market Yield 3.25% 3.27%
Average Quality** AAA AAA
Total Market Value 1,701 1,687
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality isa weighted average calculation of the highest of S&P, Moody’s and Fitch. 32

SECTOR DISTRIBUTION
City of Indio- Capitalized Interest Fund | Account #10977 | As of June 30, 2026 Sector asa Percentage of Market Value
Sector 06/30/2026 03/31/2026
Money Mkt Fd 99.73% 99.72%
Cash 0.27% 0.28%
33

PORTFOLIO CHARACTERISTICS
City of Indio- Cons Bond Proceeds | Account #10978 | As of June 30, 2026 6/30/2026
Portfolio
3/31/2026
Portfolio
Average Maturity (yrs) 0.10 0.22
Average Modified Duration 0.10 0.21
Average Purchase Yield 3.49% 3.51%
Average Market Yield 3.62% 3.58%
Average Quality** AA+ AA+
Total Market Value 9,750,153 14,402,443
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality isa weighted average calculation of the highest of S&P, Moody’s and Fitch. 34

SECTOR DISTRIBUTION
City of Indio- Cons Bond Proceeds | Account #10978 | As of June 30, 2026 Sector asa Percentage of Market Value
Sector 06/30/2026 03/31/2026
US Treasury 65.23% 64.93%
Money Mkt Fd 34.59% 34.97%
Cash 0.18% 0.10%
35

PORTFOLIO CHARACTERISTICS
Indio PFA LRBs 2025A Capitalized Interest Acct | Account #11510 | As of June 30, 2026 6/30/2026
Portfolio
3/31/2026
Portfolio
Average Maturity (yrs) 0.00 0.00
Average Modified Duration 0.00 0.00
Average Purchase Yield 3.25% 3.27%
Average Market Yield 3.25% 3.27%
Average Quality** AAA AAA
Total Market Value 16,167 761,711
*Benchmark: ICE BofA3-Month US Treasury Bill Index
**The credit quality isa weighted average calculation of the highest of S&P, Moody’s and Fitch. 36

SECTOR DISTRIBUTION
Indio PFA LRBs 2025A Capitalized Interest Acct | Account #11510 | As of June 30, 2026 Sector asa Percentage of Market Value
Sector 06/30/2026 03/31/2026
Money Mkt Fd 99.73% 99.72%
Cash 0.27% 0.28%
37

PORTFOLIO CHARACTERISTICS
Indio PFA LRBs 2025A Project Acct | Account #11511 | As of June 30, 2026 6/30/2026
Portfolio
3/31/2026
Portfolio
Average Maturity (yrs) 0.71 0.95
Average Modified Duration 0.68 0.91
Average Purchase Yield 3.46% 3.47%
Average Market Yield 3.97% 3.75%
Average Quality** AA+ AA+
Total Market Value 30,000,474 29,747,007
*Benchmark: ICE BofA3-Month US Treasury Bill Index
**The credit quality isa weighted average calculation of the highest of S&P, Moody’s and Fitch. 38

SECTOR DISTRIBUTION
Indio PFA LRBs 2025A Project Acct | Account #11511 | As of June 30, 2026 Sector asa Percentage of Market Value
Sector 06/30/2026 03/31/2026
US Treasury 90.39% 91.67%
Money Mkt Fd 9.59% 8.31%
39

CONSOLIDATED INFORMATION
40

PORTFOLIO CHARACTERISTICS
City of Indio Cons | Account #10068 | As of June 30, 2026 6/30/2026
Portfolio
3/31/2026
Portfolio
Average Maturity (yrs) 1.43 1.65
Average Modified Duration 1.21 1.42
Average Purchase Yield 4.02% 4.00%
Average Market Yield 4.07% 3.95%
Average Quality** AA+ AA+
Total Market Value 246,493,410 211,989,093
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality isa weighted average calculation of the highest of S&P, Moody’s and Fitch. 41

SECTOR DISTRIBUTION
City of Indio Cons | Account #10068 | As of June 30, 2026 Sector asa Percentage of Market Value
Sector 06/30/2026 03/31/2026
LAIF 50.88% 43.13%
US Treasury 21.29% 23.40%
Corporate 13.41% 15.43%
Agency CMBS 5.55% 6.47%
ABS 5.09% 5.77%
Agency 2.22% 2.60%
Muni Bonds 0.47% 0.56%
Supras 0.46% 1.53%
Cash 0.39% 0.37%
Money Mkt Fd 0.23% 0.76%
42

PORTFOLIO HOLDINGS
43

HOLDINGS REPORT
City of Indio | Account #10043 | As of June 30, 2026
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
ABS
44934FAD7 HALST 2024-B A3 5.41 05/17/2027 94,613.08 05/14/2024

5.41%
94,610.45
94,610.45
100.11

3.96%
94,720.75
227.49

0.08%
110.30
NA/AAA
AAA

0.88 0.08
36269WAD1 GMALT 2024
-2 A3 5.39
07/20/2027 49,109.97 05/07/20245.39%
49,107.12
49,107.12
100.09

3.93%
49,152.16

80.88 0.04%

45.04 NA/AAA
AAA

1.05 0.06
58770JAD6 MBALT 2024
-A A3 5.32
01/18/2028 191,297.05 05/17/20245.32%
191,274.67
191,274.67
100.35

4.20%
191,970.61
452.31

0.16%
695.94
Aaa/NA
AAA

1.55 0.30
44935DAD1 HALST 2025-B A3 4.53 04/17/2028 365,000.00 04/24/2025

4.53%
364,967.04
364,967.04
100.19

4.33%
365,682.19
734.87

0.31%
715.15
NA/AAA
AAA

1.80 0.78
362962AD4 GMALT 2025
-2 A3 4.58
05/22/2028 530,000.00 05/20/20254.58%
529,991.20
529,991.20
100.23

4.29%
531,203.63
741.71

0.44%
1,212.43
NA/AAA
AAA

1.90 0.68
161571HT4 CHAIT 2023-1A 5.16 09/15/2028 1,155,000.00 09/07/2023

5.23%
1,154,679.83
1,154,679.83
100.25

3.96%
1,157,909.45
2,648.80

0.97%
3,229.62
NA/AAA
AAA

2.21 0.20
05594HAD5 BMWLT 2025
-2 A3 3.97
09/25/2028 605,000.00 10/08/20253.97%
604,998.31
604,998.31

99.67 4.34%
603,032.54
400.31

0.50%
(1,965.77)
NA/AAA
AAA

2.24 0.97
437930AC4 HAROT 2024
-2 A3 5.27
11/20/2028 232,740.64 05/14/20245.27%
232,712.36
232,712.36
100.54

4.37%
234,002.79
442.92

0.20%
1,290.43
NA/AAA
AAA

2.39 0.56
448970AD5 HALST 2026
-A A3 3.97
12/15/2028 365,000.00 01/12/20263.98%
364,946.49
364,946.49

99.32 4.46%
362,535.89
644.02

0.30%
(2,410.61)
NA/AAA
AAA

2.46 1.49
36273VAD7 GMALT 2026
-1 A3 3.88
01/22/2029 650,000.00 02/03/20263.88%
649,914.92
649,914.92

99.29 4.44%
645,398.65
770.61

0.54%
(4,516.27)
NA/AAA
AAA

2.56 1.35
096919AD7 BMWOT 2024
-A A3 5.18
02/26/2029 304,219.48 06/04/20245.18%
304,173.27
304,173.27
100.51

4.33%
305,759.44
262.64

0.26%
1,586.17
Aaa/AAA
NA

2.66 0.56
43813YAC6 HAROT 2024
-3 A3 4.57
03/21/2029 535,820.06 08/09/20244.57%
535,735.88
535,735.88
100.20

4.31%
536,882.05
680.19

0.45%
1,146.17
Aaa/NA
AAA

2.72 0.64
05522RDJ4 BACCT 2024-1A 4.93 05/15/2029 1,000,000.00
--

4.92%
1,000,351.29
1,000,351.29
100.65

4.21%
1,006,455.00
2,191.11

0.84%
6,103.71
Aaa/AAA
NA

2.87 0.84
47800DAD6 JDOT 2025 A3 4.23 09/17/2029 550,000.00 03/04/2025

4.23%
549,965.41
549,965.41

99.88 4.35%
549,318.55
1,034.00

0.46%
(646.86)
Aaa/NA
AAA

3.22 1.47
92970QAE5 WFCIT 2024-2 A 4.29 10/15/2029 615,000.00 10/17/2024

4.29%
614,908.61
614,908.61
100.06

4.28%
615,370.23
1,172.60

0.51%
461.62
Aaa/AAA
NA

3.29 1.23
44935CAD3 HART 2025-A A3 4.32 10/15/2029 695,000.00 03/04/2025

4.32%
694,897.49
694,897.49
100.05

4.31%
695,319.70
1,334.40

0.58%
422.21
NA/AAA
AAA

3.29 0.95
44

HOLDINGS REPORT
City of Indio | Account #10043 | As of June 30, 2026
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
437921AD1 HAROT 252 A3 4.15 10/15/2029 360,000.00 04/29/2025

4.15%
359,959.79
359,959.79

99.78 4.38%
359,207.64
664.00

0.30%
(752.15)
Aaa/NA
AAA

3.29 1.14
89231HAD8 TAOT 2025-B A3 4.34 11/15/2029 350,000.00 04/24/2025

4.34%
349,979.95
349,979.95
100.04

4.35%
350,126.00
675.11

0.29%
146.05
NA/AAA
AAA

3.38 1.20
362955AD8 GMCAR 2025
-1 A3 4.62
12/17/2029 450,000.00 01/09/20254.62%
449,966.57
449,966.57
100.26

4.32%
451,159.20
866.25

0.38%
1,192.63
Aaa/NA
AAA

3.47 0.73
58770YAD3 MBALT 2026
-A A3 3.93
01/15/2030 330,000.00 01/13/20263.94%
329,934.56
329,934.56

99.21 4.40%
327,403.89
576.40

0.27%
(2,530.67)
Aaa/NA
AAA

3.54 1.78
02582JKP4 AMXCA 2025-2 A 4.28 04/15/2030 945,000.00 05/06/2025

4.28%
944,982.90
944,982.90

99.90 4.38%
944,047.44
1,797.60

0.79%
(935.46)
NA/AAA
AAA

3.79 1.69
17305EHA6 CCCIT 2025-A1 A1 4.3 06/21/2030 1,000,000.00 10/09/2025

3.90%
1,010,000.00
1,010,000.00

99.83 4.39%
998,310.00
1,194.44

0.83%
(11,690.00)
Aaa/AAA
NA

3.97 1.87
89240QAD7 TAOT 2026-B A3 4.13 12/16/2030 440,000.00 04/14/2026

4.14%
439,907.20
439,907.20

99.42 4.46%
437,433.92
807.64

0.37%
(2,473.28)
Aaa/AAA
NA

4.46 1.97
44935KAD5 HART 26B A3 4.81 02/18/2031 675,000.00 06/09/2026

4.81%
674,918.53
674,918.53
100.24

4.44%
676,622.70
1,262.63

0.57%
1,704.17
NA/AAA
AAA

4.64 2.20
12,496,883.84 100.01 12,489,024.40 10.44% 3.05
Total ABS 12,487,800.28 4.47% 12,496,883.84 4.31% 21,662.94 (7,859.44) 1.14 AGENCY
880591EZ1 TENNESSEE VALLEY AUTHORITY

3.875 03/15/2028 1,300,000.00 05/01/20233.81%
1,303,913.00
1,303,913.00

99.60 4.12%
1,294,800.00
14,832.64

1.08%
(9,113.00)
Aa1/AA+
AA+

1.71 1.62
3133EPME2 FEDERAL FARM CREDIT BANKS
FUNDING CORP 3.875 06/08/2028 1,000,000.00 06/07/20233.96% 996,040.00
996,040.00

99.51 4.14%
995,052.00
2,475.69

0.83%
(988.00)
Aa1/AA+
AA+

1.94 1.84
3130AWN63 FEDERAL HOME LOAN BANKS 4.0
06/30/2028 1,200,000.00 08/21/20234.53%
1,172,544.00
1,172,544.00

99.68 4.17%
1,196,163.60
133.33

1.00%
23,619.60
Aa1/AA+
AA+

2.00 1.90
3130AWTR1 FEDERAL HOME LOAN BANKS

4.375 09/08/2028 1,950,000.00 09/12/20234.49%
1,940,122.50
1,940,122.50
100.40

4.18%
1,957,720.05
26,778.65

1.64%
17,597.55
Aa1/AA+
AA+

2.19 2.04
5,412,619.50 99.89 5,443,735.65 4.55% 1.99
Total Agency 5,450,000.00 4.24% 5,412,619.50 4.16% 44,220.31 31,116.15 1.87

AGENCY CMBS
45